Toys Unlimited is an online toy store with a product line that focuses on the preschool children market. Management would like to develop a model to forecast sales, in millions of dollars, for the next four quarters. The Excel file Toys Unlimited.xlsx provides sales for each quarter for the previous five years.

a. Forecast Toys Unlimited sales for each quarter next year using a trend projection.

b. Forecast Toys Unlimited sales for each quarter next year using multiplicative decomposition.

c. Interpret the meaning of the seasonal components.

d. Which forecasting method would you choose for Toys Unlimited? Why?

AppendixLO1