1. Perform a multiplicative decomposition of the Surtido Cookie sales data, store the residuals, and generate forecasts of sales for the remaining months of 2003.
2. What did Jame learn about the trend in sales? What did the seasonal indexes tell him?
3. Compute the residual autocorrelations. Examining the residual autocorrelations and the forecasts of sales for the remainder of 2003, should Jame change his thinking about the value of decomposition analysis? Explain.
The monthly sales (in kilograms) for Surtido Cookies were introduced in Case 3-5. In Case 4-8, Jame Luna examined the autocorrelations for cookie sales to determine if there might be a seasonal component. He also considered a smoothing method to generate forecasts of future sales