Consider the Walt Disney Company€™s quarterly revenues as shown in Table 14.4.1.
a. Draw a time-series plot for this data set. Describe any trend and seasonal behavior that you see.
b. Find the moving average values and plot them on the same graph as the original data. Comment on what you see.
c. Find the seasonal index for each quarter. In particular, how much higher is the fourth quarter than a typical quarter during the year?
d. Find the seasonally adjusted values and plot them with the original data. Comment on what you see.
e. From fourth quarter 1997 to first quarter 1998, revenues fell from 6,278 to 6,147. What happened on a seasonally adjusted basis?
f. Find the regression equation to predict the long-term trend in seasonally adjusted sales for each time period, using 1, 2,€¦for the X variable.
g. Compute the seasonally adjusted forecast for the fourth quarter of 2003.
h. Compute the forecast for the first quarter of 2004.
QUESTION CONTINUE TO NEXT PAGE€¦€¦€¦.

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TABLE 14.4.1 Quarterly Revenues for Walt Disney Company and Subsidiaries Revenues Year 1997 1997 1997 1997 1998 1998 1998 1998 1999 1999 1999 1999 2000 2000 2000 2000 2001 2001 2001 2001 (millions) $5,520 5,194 5,481 6,278 6,147 5,248 5,242 6,339 5,791 5,531 5,516 6,597 6,118 6,053 6,307 6,940 5,812 5,975 6,049 7,433