Mathematics · Time Series Analysis
A company uses a multiplicative time series model to forecast sales. The linear trend is given by the equation: Trend = 400 + 10T, where T = 1 denotes the first quarter of 20X6, T = 2 denotes the second quarter of 20X6, etc. The average seasonal percentage variations are: Q1 = −30%, Q2 = +40%, Q3 = +10%, Q4 = −20%. What is the sales forecast for the third quarter of 20X7?
- 1423 units
- 2480 units
- 3517 units✓
- 43,157 units
Correct answer
517 units
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