The revenues (in $millions) of a chain of ice cream stores are listed for each quarter during the previous 5 years.
|
Year
|
|
Quarter
|
2009
|
2010
|
2011
|
2012
|
2013
|
|
1
|
16
|
14
|
17
|
18
|
21
|
|
2
|
25
|
27
|
31
|
29
|
30
|
|
3
|
31
|
32
|
40
|
45
|
52
|
|
4
|
24
|
23
|
27
|
24
|
32
|
- Plot the time series.
- Discuss why exponential smoothing is not recommended as a forecasting tool in this problem.
- Use regression analysis to determine the trend line.
- Determine the seasonal indexes.
- Using the seasonal indexes and trend line, forecast revenues for the next four quarters.