Discuss the below:
Q: A manager of a store that sells and installs spas wants to prepare a forecast for January, February, and March of next year. Her forecasts are a combination of trend and seasonality. She uses the following equation to estimate the trend component of monthly demand: Fr 80 2t, where t-0 in June of last year. Seasonal relatives are .93 for January, 1.12 for February, and 1.04 for March. What demands should she predict?
Month Forecast
January of the next year 105
February of the next year 110
March of the next year 115