The following table contains quarterly data on Upper Midwest car sales (CS) in thousands for 1996 Q1

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The following table contains quarterly data on Upper Midwest car sales (CS) in thousands for 1996 Q1 through 2016 Q4:

                        Upper Midwest Car Sales (CS)

Year

Q1

Q2

Q3

Q4

1996

407.6

431.5

441.6

306.2

1997

328.7

381.3

422.6

369.4

1998

456.3

624.3

557.5

436.7

1999

485.0

564.3

538.3

412.5

2000

555.0

682.7

581.3

509.7

2001

662.7

591.1

616.9

529.7

2002

641.2

632.7

576.6

475.0

2003

542.8

558.9

581.7

537.8

2004

588.1

626.5

590.9

580.1

2005

589.2

643.2

593.9

612.2

2006

586.1

699.4

734.4

753.8

2007

691.6

793.4

864.9

840.8

2008

653.9

754.8

883.6

797.7

2009

722.2

788.6

769.9

725.5

2010

629.3

738.6

732.0

598.8

2011

603.9

653.6

606.1

539.7

2012

461.3

548.0

548.4

480.4

2013

476.6

528.2

480.4

452.6

2014

407.2

498.5

474.3

403.7

2015

418.6

470.2

470.7

375.7

2016

371.1

425.5

397.3

313.5

a. Prepare a time-series plot of Upper Midwest car sales from 1996 Q1 through 2016 Q4.

b. Use Forecast X™ to do a time-series decomposition forecast for 2017 (be sure to request the MAPE). In the results, you see the seasonal indices. Do they make sense? Why or why not?

c. Forecast X™ calculated the historic MAPE as a measure of fit. Write a short explanation of what this MAPE means to a manager. 

d. Now calculate the MAPE for the 2017 Q1–2017 Q4 forecast horizon as a measure of accuracy, given that the actual values of CS for 2017 were:

2017 Q1

301.1

2017 Q2

336.7

2017 Q3

341.8

2017 Q4

293.5

e. Prepare a Winters’ exponential smoothing forecast of CS using data from 1996 Q1 through 2016 Q4 as the basis for a forecast of 2017 Q1–2017 Q4. Compare these results in terms of fit and accuracy with the results from the time-series decomposition forecast.

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