Problem:

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       1       2     3      4

SEASON

Winter 1,400 1,200 1,000 900

Spring 1,500 1,400 1,600 1,500

Summer 1,000 2,100 2,000 1,900

Fall        600     750  650     500

George has forecasted that annual demand for his sailboats in year 5 will equal 5,600 sailboats.

Required:

Question 1) Based on this data and the multiplicative seasonal model, what will the demand level be for George^'s sailboats in the spring of year 5? Solve the problem thoroughly and show all work.