Using the following time series sales data, respond to the following items.

a. G raph the data.

b. Based on the graph, describe the time series pattern.

c. For this time series, why is forecasting with a trend model appropriate?

d. E valuate a trend forecasting model using simple linear regression. What is the MAD?

e. What is the predicted annual change of industry sales?

f. Predict sales for the next three periods.

g. In your judgment, are the forecasts “good”? What disclaimer would you include with your forecast?

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Period Sales Period Sales 1 988 10 604 2 990 11 670 3 859 12 703 4 781 13 550 691 14 427 776 15 493 7 677 16 524 8 690 17 563 9. 605 18 471