A manager is using the equation below to forecast quarterly demand for a product:

$Y_t=6,000+80t$ where $t=0$ at $Q2$ of last year

Quarter relatives are $Q1=\mathrm{.}6,Q2=\mathrm{.}9,Q3=1\mathrm{.}3,$ and $Q4=1\mathrm{.}2.$

What forecasts are appropriate for the last quarter of this year and the first quarter of next year?

Hint: $t=0$ at $Q2$ of last year so $t=5$ for $Q3$ of this year.

t $Y_t$ Trend QtrRelative Forecast

$564001\mathrm{.}38320$

$6$

A

A

A

$7$

A$.$

$\sqrt[\phantom{2}]{?}$

A