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The quarterly sales of condominiums exhibit seasonal variation as well as trend. The seasonal relatives for Summer, Fall, Winter, and Spring are estimated as 1.2, 0.9, 0.8, and 1.1, respectively. a. (2 points) Assume that 27 condominiums are sold in a summer quarter. What is the deseasonalized sale for that quarter? b. (2 points) Assume that 32 condominiums are sold in a winter quarter. What is the deseasonalized sale for that quarter? The trend component for the condominium sales is estimated as 20+2t, where t=1 represents Spring 2016. c. (4 points) What is your forecast for Winter 2017 sales?

Summer sales: 27 condominiums (seasonal sales)
Deseasonalized sale: Seasonal Sale/ Seasonal Index value = 27/1.2 = 22.5
Winter sales: 32 condominiums (seasonal sales)
Deseasonalized sale: Seasonal Sale/ Seasonal Index value = 32/.8 = 40
Trend Component: 20 + 2t
t-value for winter season = 3
Therefore, Winter sales forecast = 20 + 2*3 = 26
 
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  1. The quarterly sales of condominiums exhibit seasonal variation as well as trend. The seasonal relatives for Summer, Fall, Winter, and Spring are estimated as 1.2, 0.9, 0.8, and 1.1, respectively. a. (2 points) Assume that 27 condominiums are sold in a summer quarter. What is the deseasonalized sale for that quarter? b. (2 points) Assume that 32 condominiums are sold in a winter quarter. What is the deseasonalized sale for that quarter? The trend component for the condominium sales is estimated as 20+2t, where t=1 represents Spring 2016. c. (4 points) What is your forecast for Winter 2017 sales?
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