The data in Travel show the average traffic on Google recorded at the beginning of each month from January 2004 to August 2012 for searches from the United States concerning travel (scaled to the average traffic for the entire time period based on a fixed point at the beginning of the time period). (Data retrieved from Google Trends, www.google.com/trends, August 13, 2012.)
a. Plot the time-series data.
b. Develop an exponential trend forecasting equation with monthly components.
c. What is the fitted value in August 2012?
d. What are the forecasts for the last four months of 2012?
e. Interpret the monthly compound growth rate.
f. Interpret the July multiplier.