Estimate the seasonal indices and the trend

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Reference no: EM13930283

The sales data in Table 3-12 are for quarterly exports of a French company.

ear	Quarter	Period	Sales(thousands of francs)	Year	Quarter	Period	Sales(thousands of francs)
1	1	1	362	4	1	13	544
	2	2	385		2	14	582
	3	3	432		3	15	681
	4	4	341		4	16	557
2	1	5	382	5	1	17	628
	2	6	409		2	18	707
	3	7	498		3	19	773
	4	8	387		4	20	592
3	1	9	473	6	1	21	627
	2	10	513		2	22	725
	3	11	582		3	23	854
	4	12	474		4	24	661

Table 3-12: Quarterly exports of a French company.

(a) Make a time plot of the data. Note the pronounced seasonality.

(b) Use a classical multiplicative decomposition to estimate the seasonal indices and the trend.

(c) Comment on these results and their implications for forecasting.

Reference no: EM13930283

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