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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 Table 2: Table 2:

  1. The quarterly sales data (number of copies sold) for a college textbook over the past 3 years are as follows in Table 2:

Table 2: 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 seasonal index? Does this result appear to be reasonable? Explain.

3. Using the information on seasonality, show a 4-quarter moving average values for this time series and forecast for the 1st quarter of the 4th year.

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