Question

North Dakota Electric Company estimates its demand trend line​ (in millions of kilowatt​ hours) to​ be: D​ = 75.0 ​+ 0.45​Q, 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 Factor​ (Index) Winter 0.80 Spring 1.20 Summer 1.40 Fall 0.60 In year 26​ (quarters 101-104), the energy use for each of the quarters beginning with winter is ​(round your response to one decimal​ place): Quarter Energy Use Winter nothing

Answer 1

Answer:

The demand forecast for winter is 96.36 millions KWH

The demand forecast for spring is 145.08 millions KWH

The demand forecast for summer is 169.89 millions KWH

The demand forecast for fall is 73.08 millions KWH

Explanation:

Given that,

The demand trend line​ is

$D=(75.0+0.45Q)\times multiplicative\ seasonal\ factors$

We need to calculate the demand forecast for winter

Using given formula

$D=(75.0+0.45Q)\times multiplicative\ seasonal\ factors$

Put the value into the formula

$D=(75.0+0.45\times101)\times0.80$

$D=96.36\ millions\ KWH$

We need to calculate the demand forecast for spring

Using given formula

$D=(75.0+0.45Q)\times multiplicative\ seasonal\ factors$

Put the value into the formula

$D=(75.0+0.45\times102)\times1.20$

$D=145.08\ millions\ KWH$

We need to calculate the demand forecast for summer

Using given formula

$D=(75.0+0.45Q)\times multiplicative\ seasonal\ factors$

Put the value into the formula

$D=(75.0+0.45\times103)\times1.40$

$D=169.89\ millions KWH$

We need to calculate the demand forecast for fall

Using given formula

$D=(75.0+0.45Q)\times multiplicative\ seasonal\ factors$

Put the value into the formula

$D=(75.0+0.45\times104)\times0.60$

$D=73.08\ millions KWH$

Hence, The demand forecast for winter is 96.36 millions KWH

The demand forecast for spring is 145.08 millions KWH

The demand forecast for summer is 169.89 millions KWH

The demand forecast for fall is 73.08 millions KWH