The data shown below contains the monthly sales (in thousands of dollars) at a local department store for each of the past 24 months.
-(A) Develop a time series plot of the data.
(B) Perform a runs test and compute a few autocorrelations to determine whether this time series is random.
(C) Given your answers to (A) and (
B), what type of forecast do you recommend? Explain your answer. (
D) Use your answer to (
C), to obtain a forecast for the next quarter (4 months). How reliable do you think this forecast is?

Question

The data shown below contains the monthly sales (in thousands of dollars) at a local department store for each of the past 24 months. 
-(A) Develop a time series plot of the data.
(B) Perform a runs test and compute a few autocorrelations to determine whether this time series is random.
(C) Given your answers to (A) and (
B), what type of forecast do you recommend? Explain your answer. (
D) Use your answer to (
C), to obtain a forecast for the next quarter (4 months). How reliable do you think this forecast is?

Quizplus · Accepted Answer

The Answer of The data shown below contains the monthly sales (in thousands of dollars) at a local department store for each of the past 24 months. 
-(A) Develop a time series plot of the data.
(B) Perform a runs test and compute a few autocorrelations to determine whether this time series is random.
(C) Given your answers to (A) and (
B), what type of forecast do you recommend? Explain your answer. (
D) Use your answer to (
C), to obtain a forecast for the next quarter (4 months). How reliable do you think this forecast is?

The Data Shown Below Contains the Monthly Sales (In Thousands