Question $1$

Use the following problem statement to answer questions $1-6.$

A manager wants to make annual purchasing plans for gardening items. One of the items the

company stocks is Fast$-$Grow, a liquid fertilizer. The sales of the item are seasonal. Quarterly

demand $($in cases$)$ for the past two years is shown in the table. The manager knows that the

expected sales for Fast$-$Grow are $680$ cases for year $3.$ The actual demands from Quarter $1$ of

year $1$ to Quarter $4$ of year $2$ are shown in the table below. Use the multiplicative seasonal

method to prepare a forecast for each quarter of the year. Round to four decimal places when

you calculate all centered averages and seasonal indexes. $[$Note: Seasonal index $=$

$($sales$)/($centered average$).$ Four$-$period centered average $=\frac{Dt+Dt+1+Dt+2+Dt+3}{4}.$

Adjusted seasonal index each avg. index$)(4))/($sum of avg. indexes$)]$

What is the two$-$period centered average for $Q3$ of year $1?$

$155\mathrm{.}7500$

$131\mathrm{.}6721$