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New car sales for a dealer in Cook County, Illinois, for the past year are shown in the following table, along with monthly indexes (
New car sales for a dealer in Cook County, Illinois, for the past year are shown in the following table, along with monthly indexes seasonal relatives which are supplied to the dealer by the regional distributor.
tableMonthUnits Sold,IndexJanFebMarAprMayJunJulAugSeptOctNovDec
a Plot the data. Does there seem to be a trend?
b Deseasonalize car sales.
c Plot the deseasonalized data on the same graph as the original data. Comment on the two graphs.
d Assuming no proactive approach on the part of management, discuss no calculations necessary how you would forecast sales for the first three months of the next year.
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