# Amazon.com has become one of the most successful online merchants. Two measures of its success are sales and net income/loss figures. They are given here. a. Produce a time-series plot for these data. Specify the exponential forecasting model that should be used to obtain the following years forecasts. b. Assuming a double exponential smoothing model, fit the least squares trend

Amazon.com has become one of the most successful online merchants. Two measures of its success are sales and net income/loss figures. They are given here.

a. Produce a time-series plot for these data. Specify the exponential forecasting model that should be used to obtain the following years€™ forecasts.

b. Assuming a double exponential smoothing model, fit the least squares trend to the historical data to determine the smoothed constant-process value and the smoothed trend value for period 0.

c. Produce the forecasts for periods 1 through 13 using Î± = 0.10 and Î² = 0.20. Indicate the sales Amazon should expect for 2008 based on the forecast model.

d. Calculate the MAD for this model.

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**Related Book For**

## Business Statistics A Decision Making Approach

9th Edition

**Authors:** David F. Groebner, Patrick W. Shannon, Phillip C. Fry

**ISBN:** 9780133021844