Problem 3-24 (Algo) 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 LAST THIS YEARS AGO YEAR YEAR 4,775 3,5es 4,3es 2,970 3,465 2,670 3, ses 2,370 3,180 2,07e 2,710 1,695 II II II III III III IV IV IV Use the regression and seasonal indexes to forecast demand for the next four quarters. (Round your Intermedlate calculations and answers to 2 declmal places.) Period Forecast (Units) II IV

Practical Management Science
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Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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**Problem 3-24 (Algo)**

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:

| Years Ago | Two Years Ago | Last Year | This Year |
|-----------|---------------|-----------|-----------|
| I         | 4,775         | 3,465     | 3,180     |
| II        | 3,585         | 2,678     | 2,070     |
| III       | 4,398         | 3,565     | 2,710     |
| IV        | 2,978         | 2,378     | 1,695     |

Use the regression and seasonal indexes to forecast demand for the next four quarters. *(Round your intermediate calculations and answers to 2 decimal places.)*

| Period | Forecast (Units) |
|--------|-------------------|
| I      |                   |
| II     |                   |
| III    |                   |
| IV     |                   |

---

*Note: The table above outlines the quarterly demand for the past three years. The challenge is to use regression and seasonal indices to forecast the demand for the upcoming four quarters, with results rounded to two decimal places.*
Transcribed Image Text:**Problem 3-24 (Algo)** 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: | Years Ago | Two Years Ago | Last Year | This Year | |-----------|---------------|-----------|-----------| | I | 4,775 | 3,465 | 3,180 | | II | 3,585 | 2,678 | 2,070 | | III | 4,398 | 3,565 | 2,710 | | IV | 2,978 | 2,378 | 1,695 | Use the regression and seasonal indexes to forecast demand for the next four quarters. *(Round your intermediate calculations and answers to 2 decimal places.)* | Period | Forecast (Units) | |--------|-------------------| | I | | | II | | | III | | | IV | | --- *Note: The table above outlines the quarterly demand for the past three years. The challenge is to use regression and seasonal indices to forecast the demand for the upcoming four quarters, with results rounded to two decimal places.*
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