Blockbuster Inc. has lately faced challenges by the growing online market (CNNMoney.com, March 3 , 2009). Its revenue from rental stores has been sagging as customers are increasingly getting their movies through the mail or high-speed Internet connections. The following table contains a portion of the total revenue from rentals of all formats of movies at Blockbuster Inc. (in millions of dollars). The full data set can be found on the text website, labeled Blockbuster.
a. Compute seasonal indices.
b. Fit linear and quadratic trend models to the seasonally adjusted data. Which model do you prefer?
c. Use decomposition analysis to make quarterly forecasts for 2009.