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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