The trend forecast equation is Ŷ = 120 + 100t. The next forecast is for period 11. The typical seasonal index for period 11 is 0.82. What are the forecast sales for period 11?
A) 1,100
B) 1,220
C) 1,000
D) 640

Question

Quizplus · Accepted Answer

The forecast sales for period 11 are calculated by substituting t = 11 into the trend equation: Ŷ = 120 + 100(11) = 1,220. Then, apply the seasonal index: 1,220 * 0.82 = 1,000.

The Trend Forecast Equation Is Ŷ = 120 + 100t