A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives are SR1 = .90, SR2 = .95

QUESTION:

A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives are SR1 = .90, SR2 = .95, SR3 = 1.05, and SR4 = 1.10. The trend equation is: Ft = 10 + 5t. Over the past nine quarters, demand has been as follows:

Is the forecast performing adequately? Explain.


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