Metropolitan Hospital has estimated its average monthly bed needs as
N = 1,000 + 9X
where X = time period (months); January 2002 = 0
N = monthly bed needs
Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years:
MONTH ADJUSTMENT FACTOR
January ............... +5%
April ................ ˆ’15%
July ............... +4%
November ............. ˆ’5%
December .............. ˆ’25%

a. Forecast Metropolitan€™s bed demand for January, April, July, November, and December 2007.
b. If the following actual and forecast values for June bed demands have been recorded, what seasonal adjustment factor would you recommend be used in making future Juneforecasts?

YEAR 2007 2006 2005 2004 2003 2002 FORECAST 1,045 937 829 721 613 505 ACTUAL 1,096 993 897 751 628 560