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The following data show the number of laptop computers sold each month at a retail store:
Month
Unit Sales
January
200
February
230
March
225
April
240
May
210
June
180
July
160
August
310
September
320
October
270
November
250
December
300
Use the above data:
a. Using the average demand for the year as the base, compute a seasonal index for each month.
b. Use regression to estimate the deseasonalized demand in each of the given months. Using these base values, compute a seasonal index for each month.
c. Are the seasonal indexes computed in parts a and b the same or different? Why?
d. Using the regression model and the seasonal indexes you computed in part b, compute a seasonally adjusted forecast for January, February, March, April, and May of the next year.
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