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): 37.10 45.00 49.80 51.00 54.60 57.60 63.40 68.80

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 37.10
2 45.00
3 49.80
4 51.00
5 54.60
6 57.60
7 63.40
8 68.80

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 74.90
10 78.60
11 82.40
12 88.90
13 92.00

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

Year: 9 10 11 12 13
Sales(000): 74.90 78.60 82.40 88.90 92.00

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

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