Question: An online retailer buys cloud services from Amazon Web Services AWS and pays AWS based on the volume of traffic coming to their website. This

An online retailer buys cloud services from Amazon Web Services AWS and pays AWS based on the volume of traffic coming to their website. This is a pay as you go model with payments based on traffic. In addition, the traffic has a seasonal pattern with Thanksgiving through Christmas seeing a big jump in network traffic. Smaller jumps are seen around Valentine's day. They pay AWS 3 cents per customer visit to their website. The data below is the network traffic for the past four quarters in 2020.

Network Traffic in millions
Quarter (2020)	Traffic
1	1.2
2	1.25
3	1.35
4	1.45

a. Based on the above create a trend line model for forecasting. Show your calculations and write out the model.

b. What should the firm budget for payment to AWS in the third quarter of 2021? Show your calculations.

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