Question 1: The monthly sales of the Cavanaugh Company from 1994M1 (t = 1) to 2000M5 (t = 77) are collected in "sales.xls". (a) Perform a multiplicative decomposition of the Cavanaugh Company sales time series. Would you use the trend, seasonal or both components to forecast? Attach Exiews output. (b) Provide forecasts for the rest of 2000. Question 2: "Q2.xls" contains a time series with 126 observations. Based on this file, answer the following questions: (a) Is the variable stationary? Explain with Exiews output. (b) Which ARIMA(p.d.q) model is proper? Explain the rationale. (c) Run the model using Exiews, Produce the time plot of residuals and the residual autocorrelations. Is the model adequate? (d) Forecast the variable at period 127.