A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives areSR1 = .90, SR2 = .95, SR3 = 1.05, and SR4 = 1.10. The trend equation is: Ft= 10 + 5t. Over thepast nine quarters, demand has been as follows:Period, t 1 2 3 4 5 6 7 8 9Demand 14 20 24 31 31 37 43 48 52Is the forecast performing adequately? Explain.

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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:
Period, t 1 2 3 4 5 6 7 8 9
Demand 14 20 24 31 31 37 43 48 52
Is the forecast performing adequately? Explain.

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