Mathematics · Time Series Multiplicative Model
A company uses a multiplicative time series model to forecast sales. The trend in sales is linear and is described 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 variations are: - Quarter 1: -30% - Quarter 2: +40% - Quarter 3: +10% - Quarter 4: -20% What is the sales forecast for the third quarter of 20X7?
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