The company VID-CO-19 has manufactured swim suits for men, women, and children for 10 years. The company is located in Boston, Massachusetts. Swim suits have always had a higher demand during the months of April, May, June, July, August, and September. The demand has always been lower during the months of October, November, December, January, February, and March.

The real demand, based on sales of year 20X1 is the following (it starts with December of the previous year):

Period           Bimester                                       Demand           Season Average

1                    December-January                            100                             90

2                    February-March                                 200                           180

3                    April-May                                             900                           910

4                    June-July                                           3,000                         2,100

5                    August-September                         4,000                         4,900

6                    October-November                          300                            350

VID-CO-19 has hired you as an Operations Management expert to help them to forecast demand for year 20X2 using the Linear Regression Method.

What is the seasonal factor for Period 3 (April-May)? (write your answer rounded to two decimals)

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Since the season average values are provided the best approac... View the full answer