- 9 Exercise 5 9 Savings Mart A Chain Of Discount Department Stores Sells Patio And Lawn Furniture Sales Are Seasonal 1 (87.05 KiB) Viewed 13 times
9. Exercise 5.9 Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and summer quarters and lower sales during the fall and winter quarters. The company developed the following quarterly sales forecasting model: Y t-7.00+1.350t-2.75D1t+0.25D2t+3.5D3tY't=7.00+1.350t-2.75D1t+0.25D2t+3.5D3t where Y^tY^ = predicted sales (in millions of dollars) in quarter tpredicted sales (in millions of dollars) in quarter t t= 7.00 = quarterly sales (in millions of dollars) when t = Oquarterly sales (in millions of dollars) when t = 0 7.00 = tt = time period (quarter) where the fourth quarter of 2012 = 0, first quarter of 2013= 1, second quarter of 2013 = 2, etc.time period (quarter) where the = fourth quarter of 2012 = 0, first quarter of 2013 = 1, second quarter of 2013 = 2, etc. D1tD1 = 1 for first-quarter observations; 0 otherwise1 for first-quarter observations; 0 otherwise t = D2tD2 = 1 for second-quarter observations; 0 otherwise1 for second-quarter observations; 0 otherwise t = D3tD3 = 1 for third-quarter observations; 0 otherwise1 for third-quarter observations; 0 otherwise Forecast Savings-Mart's sales of patio and lawn furniture for each quarter of 2020. Quarter 2020 First Quarter 2020 Second Quarter 2020 Third Quarter 2020 Fourth Quarter Grade It Now Sales Forecast (Millions of dollars)