Question
A regional supplier of jet fuel is interested in forecasting its sales. These sales data are shown for the period from 2002Q1 to 2017Q4 (data
A regional supplier of jet fuel is interested in forecasting its sales. These sales data are shown for the period from 2002Q1 to 2017Q4 (data in billions of gallons):
(c6p12)
Jet Fuel Sales (Billions of Gallons)
Year | Q1 | Q2 | Q3 | Q4 |
2002 | 23.86 | 23.97 | 29.23 | 24.32 |
2003 | 23.89 | 26.84 | 29.36 | 26.30 |
2004 | 27.09 | 29.42 | 32.43 | 29.17 |
2005 | 28.86 | 32.10 | 34.82 | 30.48 |
2006 | 30.87 | 33.75 | 35.11 | 30.00 |
2007 | 29.95 | 32.63 | 36.78 | 32.34 |
2008 | 33.63 | 36.97 | 39.71 | 34.96 |
2009 | 35.78 | 38.59 | 42.96 | 39.27 |
2010 | 40.77 | 45.31 | 51.45 | 45.13 |
2011 | 48.13 | 50.35 | 56.73 | 48.83 |
2012 | 49.02 | 50.73 | 53.74 | 46.38 |
2013 | 46.32 | 51.65 | 52.73 | 47.45 |
2014 | 49.01 | 53.99 | 55.63 | 50.04 |
2015 | 54.77 | 56.89 | 57.82 | 53.30 |
2016 | 54.69 | 60.88 | 63.59 | 59.46 |
2017 | 61.59 | 68.75 | 71.33 | 64.88 |
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Prepare a time series graph of these data. What, if any, seasonal pattern do you see in the plot? Explain.
Use ForecastX to make a time series decomposition forecast for 2018. Write a brief report explaining your forecast. Include a graph of the fitted values, the forecast values, and the actual sales.
Develop two other forecasts of jet fuel sales using the following methods:
A Winters' exponential smoothing model; and
A regression model using just time and quarterly dummy variables.
I have done all the forecasts I am unsure what to include in the short report for the time series decompostion that I prepared.
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