The Estimation of the trend component of monthly demand is  159.79994.
Compute the Trend = Yt
I need to find Y Jan Next Year, Y Feb Next Year, and Y March Next Year, which are just 19, 20, and 21. Simple continuous count to January = 1 1/2 years or 19 months
The formula for the trend is already given as 60 + 4t
The value of t for the 3 months is found by simply adding as follows:
Ft = 60 + 4 * t
Ft for Jan = Y Jan Next Year = 60 + 4 * 19 = 136
Ft for Feb = Y Feb Next Year = 60 + 4 * 20 = 140
Ft for Mar = Y Mar Next Year = 60 + 4 * 21 = 144
Compute the forecast = trend * seasonal relative
The seasonal relative for each month is already given in the question as 0.89, 0.95, and 1.11 for the 3 months respectively.
We found the 3 trends above as 136, 140, and 144 for the 3 months respectively.
Hence January fore cast = 0.89 * 136 = 121.04
February fore cast = 0.95 * 140 = 133
March fore cast = 1.11 * 144 = 159.79994
Forecasting is the process of making predictions based on past and current data. Later you can compare these to what is actually happening. For example, a company may estimate revenue for the next year and compare it to actual results. Forecasting is a similar but more general term.
Learn more about Forecasting here:-https://brainly.com/question/21445581
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