A manager of a store that sells and installs spas wants to prepare a forecast for January,
February, and March of next year. Her forecasts are a combination of trend and
seasonality. She uses the following equation to estimate the trend component of monthly
demand: Ft = 70 + 5t, where t= 0 in June of last year. Seasonal relatives are 1.10 for
January, 1.02 for February, and .95 for March. What demands should she predict? (Round
your answers to 2 decimal places.)
4. Problem 3-15
The manager of a fashionable restaurant open Wednesday through Saturday says that the
restaurant does about 25 percent of its business on Friday night, 34 percent on Saturday
night, and 20 percent on Thursday night. What seasonal relatives would describe this
situation?(Round your answers to 2 decimal places.)