North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be: D= 77 +0.43Q
where Q refers to the sequential quarter number and Q=1 for winter of year 1. In addition, the multiplicative seasonal factors are as follows:
Quarter Factor (index)
winter .8
spring 1.1
summer 1.4
fall .7
Find the forecast of for the four quarters of year of 17.

The demand forecast for the four quarters of the year of 17 is

Demand for winter of year 17 = 83.96 million kWh

Demand for spring of year 17 = 115.92 million kWh

Demand for summer of year 17 = 148.13 million kWh

Demand for fall of year 17 = 74.37 million kWh

Explanation:

The North Dakota Electric Company estimates its demand trend line by the following equation.

Where Q is the sequential quarter number.

The multiplicative seasonal factors are as follows:

winter = 0.8

spring = 1.1

summer = 1.4

fall = 0.7

We are asked to find the forecast for the four quarters of the year of 17.

Since the quarter numbers are sequential,

Q =  1 + 16×4

Q = 65 for winter of year 17

Q = 66 for spring of year 17

Q = 67 for summer of year 17

Q = 68 for fall of year 17

Demand Winter year 17:

Demand Spring year 17:

Demand Summer year 17:

Demand Fall year 17:

Therefore, the demand forecast for the four quarters of the year of 17 is

Demand for winter of year 17 = 83.96 million kWh

Demand for spring of year 17 = 115.92 million kWh

Demand for summer of year 17 = 148.13 million kWh

Demand for fall of year 17 = 74.37 million kWh

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