The table shows quarterly grain shipment for a farming coope

The table shows quarterly grain shipment for a farming cooperative. The regression line (liner equation) for the deseasonalized values is Y = 3.55x + 229. Rounded to two decimal places, what is the forecast for Quarter III. Year 6? Select one 310.65 314.20 260.95 245.88

Solution

Demand= 3.55x + 229

for quarte 3, year 6, x=23. So demand for year 6 = 3.55*23 + 229

now for quarter 3, seasonal index= 0.84

Hence, forcast for quarte 3, year 6 = (3.55*23 + 229)*(0.84) = 260.95 , so answer is option (c).