The following table contains quarterly data on Upper Midwest car sales (CS) in thousands for 1996 Q1
Question:
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.
Step by Step Answer:
Forecasting And Predictive Analytics With Forecast X
ISBN: 978-1259903915
7th edition
Authors: J. Holton Wilson, Barry Keating