Management of Remingtons Department Store has used timeserie

Management of Remington’s Department Store has used time-series extrapolation to forecast retail sales for the next four quarters. The sales estimates are $130,000, $150,000, $170,000, and $190,000 for the respective quarters. Seasonal indices for the four quarters have been found to be 1.25, 0.95, 0.75, and 1.05, respectively. Compute the seasonalized sales forecast for each quarter.

Solution

Seasonalised sales forecast for each quarter is sales * seasonal indices