Problem 4.26 George Kyparisis owns a company that manufactures sailboats. Actual
ID: 385642 • Letter: P
Question
Problem 4.26 George Kyparisis owns a company that manufactures sailboats. Actual demand for George's sailboats during each of the past four seasons was as follows Year Season Winter Spring Summer Fall 1,480 1,560 1,040 640 1,280 1,400 2,140 750 1,040 1,600 2,000 690 960 1,580 2,000 520 George has forecasted that annual demand for his sailboats in year 5 will equal 5,600 sailboats Based on the given data and using the multiplicative seasonal model, the demand level for George's sailboats in the spring of year 5 will be silboats (enter a whole number)Explanation / Answer
Total for winter = 1480+1280+1040+960 = 4760
Total for spring = 1560+1400+1600+1580 = 6140
Total for summer = 1040+2140+2000+2000= 7180
Total for fall = 640+750+690+520= 2600
Total for all weather = 20,680
Average for all years = 20540/16 = 1,292.5
Average for spring = 6140/4 = 1535
Spring index = 1535/1,292.5 = 1.187
Demand for spring year 5 = (5600/4) * 1.187 = 1,661.8 or 1,662 sailboats.