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The quarterly sales data (number of copies sold) for a college textbook over the past 3 years are as follows in the Table below: QUARTERLY

  1. The quarterly sales data (number of copies sold) for a college textbook over the past 3 years are as follows in the Table below:

QUARTERLY SALES
Quarter Year 1 Year 2 Year 3
1 16 18 18
2 9 9 11
3 26 29 29
4 25 23 26

  1. Compute seasonal indexes for the 4 quarters.
  2. When does the textbook publisher experience the largest change in sales? Does this result appear to be reasonable? Explain.
  3. Using the information on seasonality, compare a 3-quarter moving average to trend projection model and an exponential smoothing with a smoothing constant of 0.1.
  4. Use the selected model to generate a forecast for sales for the first quarter of Year 4.

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