George Kyparisis owns a company that manufactures sailboats. Actual demand for George's sailboats during each of the past four seasons was as follows: Year Season 1 2 3 4 Winter 1 comma 4401,440 1 comma 2001,200 1 comma 0001,000 920920 Spring 1 comma 5601,560 1 comma 4401,440 1 comma 6401,640 1 comma 5801,580 Summer 1 comma 0001,000 2 comma 1402,140 2 comma 0402,040 1 comma 9001,900 Fall 680680 810810 650650 500500 George has forecasted that annual demand for his sailboats in year 5 will equal 5 comma 6005,600 sailboats. Based on the given data and using the multiplicative seasonal model, the demand level for George's sailboats in the spring of year 5 will be nothing sailboats (enter a whole number). Enter your answer in the answer box and then click Check Answer.

Forecast for Spring season demand year 5 = 1,680 sailboats

Explanation:

total demand:

year 1 = 4,560

year 2 = 5,590

year 3 = 5,410

year 4 = 5,040

average quarterly demand:

year 1 = 4,560 / 4 = 1,140

year 2 = 5,590 / 4 = 1,397.5

year 3 = 5,410 / 4 = 1,352.5

year 4 = 5,040 / 4 = 1,260

Spring season demand:

year 1 = 1,520

year 2 = 1,400

year 3 = 1,640

year 4 = 1,580

Seasonal factor for Spring season:

year 1 = 1,520 / 4,560 = 0.3333

year 2 = 1,400 / 5,590 = 0.2504

year 3 = 1,640 / 5,410 = 0.3031

year 4 = 1,580 / 5,040 = 0.3135

Average seasonal factors for Spring season = (0.3333 + 0.2504 + 0.3031 + 0.3135) / 4 = 0.3

Forecast for Spring season demand year 5 = 0.3 x 5,600 sailboats = 1,680 sailboats

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