Question: Problem 3

An electronic retail company recorded the quarterly sales of TV sets for the past 4 years. The data is recorded in table 4 below.

a. Calculate the seasonal relative for each quarter.

b. Using the seasonal relatives, deseasonalize the sales value presented in table 2.

c. Using a trend line equation for the deseasonalized values Tt = 5.101 + 0.148 * t, forecast the sales expected in quarters 1 and 2 of the 5th year.

d. Reseasonalize these two forecasts to re-capture the seasonal component.