Question: A textbook publishing company has compiled data on total annual sales of its business textbooks for the preceding eight years: Year: 1 2 3 4
A textbook publishing company has compiled data on total annual sales of its business textbooks for the preceding eight years:
| Year: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
| Sales(000): | 37.00 | 43.10 | 47.60 | 50.90 | 55.50 | 57.50 | 63.90 | 67.80 |
a-1. Select the correct data chart and fit an appropriate model to it.
| Chart A | Chart B | Chart C |
(Click to select) Chart A Chart B Chart C
a-2. Forecast the preceding eight years, and determine the forecast errors. (Negative answers should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.)
| Year | Sales(000) | Forecast | Error | Error2 |
| 1 | 37.00 | |||
| 2 | 43.10 | |||
| 3 | 47.60 | |||
| 4 | 50.90 | |||
| 5 | 55.50 | |||
| 6 | 57.50 | |||
| 7 | 63.90 | |||
| 8 | 67.80 | |||
a-3. Construct 2s control limits. (Round the final answer to 2 decimal places.)
2s control limits are
b. Using the model, forecast textbook sales for each of the next five years. (Round the final answers to 1 decimal place.)
| Year | Sales(000) | Forecast | Error |
| 9 | 74.30 | ||
| 10 | 76.00 | ||
| 11 | 83.20 | ||
| 12 | 87.30 | ||
| 13 | 92.50 | ||
c. Suppose actual sales for the next five years turn out as follows:
| Year: | 9 | 10 | 11 | 12 | 13 |
| Sales(000): | 74.30 | 76.00 | 83.20 | 87.30 | 92.50 |
Calculate the forecast errors for years 9 to 13. Is the forecasting process in control? (Click to select) Yes No
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
