A plastics manufacturing performed a quarterly time series analysis for demands over the last five years (periods 1 through 20). The analysis resulted in the following trend equation and seasonal indexes: = 920.0 + 22.6 t
If demand for period 19 was actually 1,000, what was the deseasonalized demand?
A) 1045.95
B) 1394.60
C) 750.00
D) 1333.33
E) 1859.47

Question

A plastics manufacturing performed a quarterly time series analysis for demands over the last five years (periods 1 through 20). The analysis resulted in the following trend equation and seasonal indexes:  = 920.0 + 22.6 t
 If demand for period 19 was actually 1,000, what was the deseasonalized demand?
A) 1045.95 
B) 1394.60 
C) 750.00 
D) 1333.33 
E) 1859.47

Quizplus · Accepted Answer

Using the trend equation, we can estimate the expected demand for period 19:
Demand = 920 + 22.6(19) = 1363.4

To calculate the deseasonalized demand, we need to adjust for the seasonal index of period 19:
Deseasonalized demand = 1000 / 1.231 = 811.54

Therefore, the correct answer is D) 1333.33.

A Plastics Manufacturing Performed a Quarterly Time Series Analysis for Demands