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Question Help North Dakota Electric Company estimates its demand trend line (in

ID: 391360 • Letter: Q

Question

Question Help North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D = 77.0 + 0.45Q. where Q refers to the sequential quarter number and Q-1 for winter of Year 1. In addition, the multiplicative seasonal factors are as follows: Quarter Winter Spring Summer Fall Factor (Index) 1.25 1.50 0.53 In year 26 (quarters 101-104), the energy use for each of the quarters beginning with winter is (round your response to one decimai place): QuarterE Energy Use Winter Spring Summer Fal Enter your answer in each of the answer boxes

Explanation / Answer

Steps:

1

2

3

4 = 2*3

Quarter

Quarter Number (Q)

Forecast

Y = 77 + 0.45Q

Seasonal factor

Adjusted forecast

Winter

101

122.45

0.72

88.164

Spring

102

122.9

1.25

153.625

Summer

103

123.35

1.5

185.025

Fall

104

123.8

0.53

65.614

ANS:

Quarter

Energy use

Winter

88.164

Spring

153.625

Summer

185.025

Fall

65.614

1

2

3

4 = 2*3

Quarter

Quarter Number (Q)

Forecast

Y = 77 + 0.45Q

Seasonal factor

Adjusted forecast

Winter

101

122.45

0.72

88.164

Spring

102

122.9

1.25

153.625

Summer

103

123.35

1.5

185.025

Fall

104

123.8

0.53

65.614