22 please please help me. It is not 667 The following are historical demand data:YEAR2 years agolast yearSEASONSpringSummerFallWinterSpringSummerFallWinterACTUALDEMAND203*144382565471271686955Use regression analysis and seasonal indexes to forecast this summer's demand.Note: Do not round intermediate calculations. Round your answer to the nearest whole number.Forecast for this summer's demand

Answered: The following are historical demand…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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22 please please help me. It is not 667

The following are historical demand data:
YEAR
2 years ago
last year
SEASON
Spring
Summer
Fall
Winter
Spring
Summer
Fall
Winter
ACTUAL
DEMAND
203*
144
382
565
471
271
686
955
Use regression analysis and seasonal indexes to forecast this summer's demand.
Note: Do not round intermediate calculations. Round your answer to the nearest whole number.
Forecast for this summer's demand

Expert Solution

Step 1

The seasonal index, also known as seasonal effect or seasonal component, is a gauge of how a given season generally stacks up against the cycle's mean. A value called the seasonal index can be expressed as a percentage or as a decimal. We have two uses for seasonal indices: (1) They may be used to deseasonalize data, a method that smoothes out data. (2) They may be applied to time series data to aid with score prediction. The seasonal index is used to adjust an initial projected value from a smoothed line up or down based on the season we are projecting for.