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): 37.80 43.20 49.00 50.50 54.50 58.90 63.20 68.30

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 37.80
2 43.20
3 49.00
4 50.50
5 54.50
6 58.90
7 63.20
8 68.30

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 74.40
10 77.30
11 82.90
12 88.60
13 93.90

c. Suppose actual sales for the next five years turn out as follows:

Year: 9 10 11 12 13
Sales(000): 74.40 77.30 82.90 88.60 93.90

Calculate the forecast errors for years 9 to 13. Is the forecasting process in control? (Click to select) Yes No

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