MSU Textbook Sales Forecast with Seasonal Effects Exercises
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The manager of the College bookstore wants to forecast the quarterly sales of textbook and asks for your advice. The “Textbook Sales Data” file attached contains data on the textbook quarterly sales (number of copies sold) for the past three years. Use this data file to answer the following questions:
a. Construct a time series plot of the data and comment on it.
b. Build a model to forecast the quarterly sales of textbook for the next year. Make sure the model accounts for the seasonal effects in the data.
c. Build another model to forecast the quarterly sales of textbook for the next year, accounting for the seasonal effects and any linear trend in the data.
d. Compare both models (in parts b and c) and decide which one to use for forecast. Explain your answer
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