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

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