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Montgomery et al . ( 1 9 9 0 ) give 4 years of data on monthly demand for a soft drink. These data are
Montgomery et al give years of data on monthly demand for a soft drink. These data are given in Table E
a Make a time series plot of the data and verify that it is seasonal. Why do you think seasonality is present in these data?
b UseWintersmultiplicativemethodforthefirstyearstodevelop a forecasting method for this data. How well does this smoothing procedure work?
c Make onestepahead forecasts of the last months. Determine the forecast errors. How well did your procedure work in fore casting the new data?
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