Reference no: EM131533509

A major source of revenue in Texas is a state sales tax on certain types of goods and services. Data are compiled and the state comptroller use them to project future revenue for the state budget. One particular category of goods is classified as a Retail Trade. Four years of quarterly data (in $millions) for one particular area of Southeast Texas follows: ( Please show answers on excel spreadsheet) thank you! 

Quarter     Year 1     Year 2    Year 3     Year 4

1              218           225          234         250

2              247            254        265           283

3              243             255      264           289

4              292             299      327           356

A). Compute seasonal indices for each quarter based on a CMA.

B). Deseasonalize the data and develop a trend line on the deseasonalize data.

C). Use the trend line to forecast the sales for each quarter of 5 years.

D). Use the seasonal indices to adjust the forecast found in part (c) to obtain the final forecast.