The planning department of Padget and Kure Shoes the manufac

The planning department of Padget and Kure Shoes, the manufacturer of an exclusive brand of women

The planning department of Padget and Kure Shoes, the manufacturer of an exclusive brand of women??s shoes, developed the following trend equation, in millions of pairs, based on 5 years of quarterly data. Y hat = 3.30 + 1.75t The following table gives the seasonal factors for each quarter. Quarter I II III IV Index 110.0 120.0 80.0 90.0 Determine the seasonally adjusted forecast for each of the four quarters of the sixth year. (Round estimated pairs to 2 decimal places and quarterly forecast to 3 decimal places.) Quarter t Estimated pairs (millions) Quarterly forecast (millions) I _____ ______ _____ II _____ ______ _____ III _____ ______ _____ IV _____ ______ _____

Solution

Regression line is given as Y = 3.30+1.75t

t = index for quarter

when t= 110, y = 3.30+1.75(110)

= 195.8

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Quarter II

Y = 3.30+1.75(120)

= 213.3

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Quarter III

y =330+140 = 470

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Quarter iv

x=90

y = 330+157.50

= 487.50