Using the following time series data of U.S. new car sales ($ millions), respondto the following items. Find “Monthly Retail Trade Report,” then select “Time Series/Trend Charts” to find the data for U.S. new car sales.)

a. Graph the data.

b. Based on the graph, describe the time series pattern.

c. For this time series, why is forecasting with a trend model appropriate?

d. E valuate a trend forecasting model using simple linear regression. What is the MAD?

e. What is the predicted annual change in industry sales?

f. Predict sales for the next three periods.

g. In your judgment, are the forecasts “good”? What disclaimer would you include with your forecast?

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$ Sales (Millions) $ Sales (Millions) Year Year 2009 $486,565 2014 $785,142 2010 549,473 2015 842,120 2011 608,788 2016 877,743 2012 672,550 2017 911,157 2013 735,374 2018 943,538