Given the following gasoline data:
Quarter Year 1 Year 2
1 150 156
2 140 148
3 185 201
4 160 174
(a) Compute the seasonal index for each quarter.
(b) Suppose we expect year 3 to have annual demand of 800. What is the forecast value for each quarter in year 3?
(a)
Quarter Year 1 Year 2 Average two-
year demand Quarterly demand Average seasonal index
1 150 156 153 164.25 .932
2 140 148 144 164.25 .877
3 185 201 193 164.25 1.175
4 160 174 167 164.25 1.017
(b)
Quarter Forecast
1 200 * .932 = 186.00
2 200 * .877 = 175.34
3 200 * 1.175 = 235.01
4 200 * 1.017 = 203.35
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