Question: A textbook publishing company has compiled data on total annual sales of its business texts for the preceding nine years: a. Using an appropriate model,
A textbook publishing company has compiled data on total annual sales of its business texts for the preceding nine years:
a. Using an appropriate model, forecast textbook sales for each of the next five years. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.)
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 |
| 37.50 | 43.60 | 49.10 | 51.80 | 54.20 | 58.50 | 62.10 | 69.20 | 74.60 |
b. Compute +/- 2s control limits for the control chart for forecast errors using just data from the original nine periods. (Round your intermediate calculations to 4 decimal places and final answer to 2 decimal places.)
c. Suppose actual sales for the next five years turn out as follows:
| Year | 10 | 11 | 12 | 13 | 14 |
| Sales (000): | 78.20 | 81.30 | 88.40 | 91.00 | 96.50 |
Is the forecast performing adequately?
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