Problem:
Management of Davis's Department Store has used time-series extrapolation to forecast retail sales for the next four quarters. The sales estimates are $100,000' $120,000' $140,000 and $160,000 respective quarters before adjusting for seasonality. Season indices for the four quarters have been found to be 1.30, 0.90, 0.70, and 1.10 respectively.
Required:
Question 1) Compute a seasonalized or adjusted sales forecast. Solve the problem and show all work.