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The data in Table 3-11 represent the monthly sales of product A for a plastics manufacturer for years 1 through 5.
1
2
3
4
5
Jan
742
741
896
951
1030
Feb
697
700
793
861
1032
Mar
776
774
885
938
1126
Apr
898
932
1055
1109
1285
May
1099
1204
1274
1468
Jun
1107
1223
1326
1422
1637
Jul
1165
1290
1303
1486
1611
Aug
1216
1349
1436
1555
1608
Sep
1208
1341
1473
1604
1528
Oct
1131
1296
1453
1600
1420
Nov
971
1066
1170
1403
1119
Dec
783
901
1023
1209
1013
Table 3-11: Monthly sales of product A for a plastics manufacturer (in 1,000s).
(a) Plot the time series of sales of product A. Can you identify seasonal fluctuations and/or a trend?
(b) Use a classical multiplicative decomposition to calculate the trend-cycle and monthly seasonal indices.
(c) Do the results support the graphical interpretation from part (a)?
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