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Problem description: The quarterly sales for specific educational software over the past five years are given in the following table. YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Quarter 1 1710 1820 1830 1920 2010 Quarter 2 960 910 1090 1130 1230 Quarter 3 2720 2840 2900 3200 3350 Quarter 4 2430 2200 2590 2740 2790 You are asked to conduct a time series analysis on this set of data and provide your quarterly forecasts of sales for specific educational software for Year 6. You should use the forecasting tools you learned in your BSAT 382 class to conduct an appropriate analysis in order to provide the manager with your findings. Your forecasts have to be done on computer, not by hand. Your final answers (typed; NOT hand-written) should be no more than one page long and should include answers to the following questions: (1) How do you know there is a seasonal variation in the data? (2) What are the values of quarterly seasonal indexes? (3) How can you tell if there is an upward, downward or no trend? (4) How do you interpret the values of “a” and “b” (in the context of this problem) in the following trend projection equation? T = a + b * t (5) What are your forecasted quarterly sales for Year 6?
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