Amazon.com has become one of the most successful online merchants. Two measures of its success are sales and net income/loss figures. They are given here.

a. Produce a time-series plot for these data. Specify the exponential forecasting model that should be used to obtain the following years€™ forecasts.
b. Assuming a double exponential smoothing model, fit the least squares trend to the historical data to determine the smoothed constant-process value and the smoothed trend value for period 0.
c. Produce the forecasts for periods 1 through 13 using α = 0.10 and β = 0.20. Indicate the sales Amazon should expect for 2008 based on the forecast model.
d. Calculate the MAD for this model.

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Year Net Income/Loss Sales 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 -0.3 0.5 15.7 147.7 609.8 1.639.8 2.761.9 3,122.9 -275 -1245 一719.9 -567.3 -149.1 าว 3.933 35.3 588.5 359 190 476 5.263.7 6.921 8,490 10.711 14.835