Q7 CH 7 10 The XYZ Company developed the following quarterly

Q7: CH 7 (10%)
The XYZ Company developed the following quarterly sales forecasting model:

Yt = 6.32 + 0.01t

where Yt = predicted sales ($ million) in quarter t; t = 1 (First quarter of 2008), 2 (Second

quarter of 2008), 3 (Third quarter of 2008), and so on.

Given the time-series model, what is the period t for the fourth quarter of 2018?

How much is the predicted sales for the fourth quarter of 2018?

The time in years from 2008 and 2018 = 11

So, Period t for the fourth quarter of 2018 = 11*4 = 44

Yt = 6.32 + 0.01t

Y44 = 6.32 + 0.01*44

Y44 = $6.76 Million

So, fourth quarter sales of 2018, is $6.76 Million.