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I’m working on a business multi-part question and need an explanation and answer to help me learn.

Problem 1

Target, Inc has developed a sales forecasting model based on twenty years of data. The model forecasts quarterly sales. The model is

Y’ = 7X + 120

Sales are measured in millions, so $10 million was recorded as a 10. Quarters were coded1 to 80. Seasonality indices for the four quarters are

I -> .90, II -> 1.00, III -> .80, and IV -> 1.30

Answer the questions that follow.

1- What is the estimated sales for the 3rd quarter of the 21st year. Round to nearest million.

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