A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives are SR₁ = .90, SR₂ = .95, SR₃ = 1.05, and SR₄ = 1.10. The trend equation is: F_t = 10 + 5t. Over the past nine quarters, demand has been as follows:

Is the forecast performing adequately? Explain.

Transcribed Image Text:

Period, t:1 Demand: 14 6 37 20 24 31 31 43 48 52