Question

Zeus Computer Chips, Inc., used to have major contracts to produce the Centrino-type chips. The market has been declining during the past three years because of the quad-core chips, which it cannot produce, so Zeus has the unpleasant task of forecasting next year. The task is unpleasant because the firm has not been able to find replacement chips for its product lines. Here is demand over the past 12 quarters:
Two Years
Ago Last Year This Year
I 4800 I 3500 I 3,200
II 3500 II 2700 II 2100
III 4300 III 3500 III 2700
IV 3,000 IV 2,400 IV 1700
Use the decomposition technique to forecast demand for the next four quarters.

Answer 1

Answer:

1st quarter := 2488.23

2nd quarter = 1646.50

3rd quarter = 1893.98

4th quarter = 1152.93

Step-by-step explanation:

Forecast demand in the next four quarters

intercept ( a ) = 3116.67 - (- 168.25 * 6.5 ) = 4210.29

Slope ( b ) = ( 219041.15 ) - ( 12 * 6.5 * 3,116.67 ) / 650 - ( 12 * ( 6.5)^2 )

                 = -24059.11 / 143 = -168.25

Forecast demand = a + bt = 4210.29 + 168.25t  

1st quarter := 2488.23

2nd quarter = 1646.50

3rd quarter = 1893.98

4th quarter = 1152.93

Values calculated using data from table attached below ( table 2 )