Table P-16 contains the quarterly sales (in millions of dollars) for the Disney Company from the first

Question:

Table P-16 contains the quarterly sales (in millions of dollars) for the Disney Company from the first quarter of 1980 to the third quarter of 1995.
Table P-16

a. Perform a multiplicative decomposition of the time series consisting of Disney's quarterly sales.
b. Does there appear to be a significant trend? Discuss the nature of the seasonal component.
c. Would you use both trend and seasonal components to forecast?
d. Forecast sales for the fourth quarter of 1995 and the four quarters of 1996.