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A company is basing its budget on predicted sales of one of its products.

A company is basing its budget on predicted sales of one of its products. They have tasked you with forecasting the sales in year 2. The company has found that a fairly accurate prediction can be found when the trend

is calculated like so:

a = 10,000

b = 2,000

The sales of year 1 were affected by seasonal variation and were as follows:

Q1:12,500

Q2:14,200

Q3:15,400

Q4:19,650

You use a multiplicative model and round percentages to the nearest whole percent.

Select ALL the correct quarterly forecasts of year 2 from the list.

A.

Year 2 Q1 = 20,800

B.

Year 2 Q2 = 22,220

C.

Year 2 Q3 = 24,960

D.

Year 2 Q4 = 27,340

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