The underlying trend in the demand for a particular product is constant (flat), and is subject to quarterly seasonal variations as follows:
| Quarter | Q1 | Q2 | Q3 | Q4 |
| Seasonality | +50% | +50% | -50% | -50% |
Assume a multiplicative model is appropriate.
If the demand for the last quarter, Q2, was 240 units, then the forecasted demand for the next quarter, Q3, is
A. 80 units.
B. 100 units.
C. 120 units.
D. 140 units.
Answer: A
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