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 I. Year 6? Select one 303.55 307.10 260.95 245.88

Solution

Answer: Using y = 3.55x+229 and plugging x= 21 for the year 6 quarter I,

     We get y = 3.55(21) +229 = 303.55

    Multiplying with seasonal factor that is 0.81

    We get the forecast for year 6 quarter I as 303.55 (0.81) = 245.88 (rounded to two decimal places)

   Therefore the correct option is D 245.88