The Following Seasonal Indexes and Trend Line Were Computed from Five

question 34

Essay

The following seasonal indexes and trend line were computed from five years of quarterly sales data.
Trend line: ŷt = 325 + 18.5t, t = 1, 2, 3, …20. $$\begin{array} { | c c | } \hline \text { Quarter } & \text { Seasonal index } \\\hline 1 & 1.35 \\2 & 1.22 \\3 & 0.88 \\4 & 0.55 \\\hline\end{array}$$ Forecast the sales for the next four quarters.

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Definitions:

Strike-Slip Fault

A type of fault where two blocks of the Earth's crust slide past each other horizontally along the fault plane.

Transform Boundaries

Plate boundaries where tectonic plates slide horizontally past each other, often leading to earthquakes.

Mid-Ocean Ridge

A series of mountains beneath the ocean, generated by the shifting of tectonic plates, where fresh oceanic crust is formed.

Shear Zone

A generally tabular zone of rock that is more highly sheared and deformed than rocks outside the zone.