In March 2018, Amazon passed Alphabet (Google's parent company) to become the world's second most valuable company measured by stock market capitalization. The development of the quarterly revenue by Amazon has been on an impressive trajectory. Since Q1 2007, the quarterly revenue has increased twenty-fold from $3 billion to $60 billion Q4 2017. You can find quarterly revenue data in the Excel file amazon.xlsx.

a. Construct a graph showing AOL?s advertising revenue over time.

b. Forecast the advertising revenue for each quarter in 2018 using multiplicative decomposition.

c. Interpret the meaning of the seasonal components.

d. Calculate the MAD for this forecast.

e. What can you conclude about AOL?s business outlook for 2018?

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Revenue (million $) 2017 Quarter 2015 2016 29.13 22.72 35.71 30.40 23.19 37.96 32.71 43.74 3 25.36 4 35.75 43.74 60.50