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1.Using an additive time series model, the quarterly trend (Y) is given by 丫 = 65 + 7t, where t is the quarter (starting with t = 1 in the first quarter of 20X5). If the seasonal component in the fourth quarter is -30, what is the forecast for the actual value for the fourth quarter of 20X6, to the nearest whole number?
A. 63
B. 546
C. 85
D. 91 (2 marks)
2. The trend for monthly sales ($ 丫) is related to the month (t) by the equation Y = 1,500 - 3t where t = 1 in the first month of 20X8. What are the forecast sales (to the nearest dollar) for the first month of 20X9
if the seasonal component for that month is 0.92 using a multiplicative model?
A.$1,377
B.$17,904
C.$1,344
D.$1,462
