Homework SourseJoe Barrow owner of Barrows Department Store has used timese
Joe Barrow, owner of Barrow’s Department Store, has used time-series extrapolation to forecast retail sales for the next 4 quarters. The sales estimates are $120,000, $140,000, $160,000, and $180,000 for the respective quarters. Seasonal indices for the 4 quarters have been found to be 1.25, .90, .75, and 1.10, respectively. Compute a seasonalized or adjusted sales forecast
Solution
Forecast
Sales*indices
| Sales estimate | Seasonal indices | Forecast Sales*indices |
| $120,000 | 1.25 | $150,000 |
| $140,000 | 0.9 | $126,000 |
| $160,000 | 0.75 | $120,000 |
| $180,000 | 1.1 | $198,000 |
