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Trend equation plus quarterly relatives to predict demand

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Question

A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives are SR1 = 0.9, SR2 = 0.95, SR3 = 1.05, and SR4 = 1.1. The trend equation is: Ft = 12 + 4t. Over the past nine quarters, demand has been as follows: Period, t: 1 2 3 4 5 6 7 8 9 Demand: 15 19 24 27 31 34 38 41 47.

Compute the MAD and tracking signal for each period.

Reference no: EM133483892

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