The following table shows the deseasonalized sales of new cars made by DT Dobie in the year 2018 to 2020:

Deseasonalized sales

                      2018 2019 2020

Quarter 1       681 673 734

               2       711 613 773

               3        672 578 861

               4       646 676 772

The director of marketing has availed information with respect to seasonal indices that were used to generate the sales above as follows

                      2018 2019 2020 ASI

Quarter 1       0.81 0.76 0.81

Quarter 2       1.13 1.06 1.08

Quarter 3       0.90 1.00 0.91

Quarter 4       1.15 1.18 1.21

Multiplicative seasonal indices were used in the above analysis

Required

1. Calculate seasonal indices for the year 2019

2. Determine actual sales for the years 2018-2020

3. Generate the OLS parameters from the actual sales data in the two above and estimate sales for the year 2021 Q1-Q4

Answer rating: 100% (QA)

1 Calculate seasonal indices for the year 2019 Seasonal indices for the year 2019 can be calculated ... View the full answer