Question 12
A time series dataset shows quarterly sales data for a company over 5 years. The company observes the following characteristics:
● The sales exhibit a linear upward trend of 5 units per quarter.
● A seasonal pattern is present, where sales increase by +20 units in Quater 2 and Quater 4, and decrease by −15 units in Quater 1 and Quater 3.
● The time series is non-stationary due to the trend.
If the sales in Q1 of the first year were 200, what will be the forecasted sales in Q4 of the 5th year, assuming no randomness?
295
375
315
395