Question

Product shows a seasonal demand pattern with trends. The regression equation shows 800 units for January, and the January seasonal index is 1.25. What is the final demand forecast for January?

A) 200 units
B) 1000 units
C) 640 units
D) 100 units

Answer 1

The final demand forecast for January is 1000 units.

Step-by-step explanation:

To find the final demand forecast for January, we need to multiply the regression equation (800 units) by the seasonal index (1.25). So, the final demand forecast for January is 800 * 1.25 = 1000 units.