The following table contains quarterly data on Upper Midwest car sales
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The following table contains quarterly data on Upper Midwest car sales

13. The following table contains quarterly data on Upper Midwest car sales (CS) in thousands for 1996Q1 through 2016Q4: 


a. Prepare a time-series plot of Upper Midwest car sales from 1996Q1 through 2016Q4.

b. Use ForecastXTM to do a time-series decomposition forecast for 2017 (be sure to request the MAPE). In the results, you see the seasonal indices. Do they make sense? Why or why not?

c. ForecastXTM calculated the historic MAPE as a measure of fit. Write a short explanation of what this MAPE means to a manager.

d. Now calculate the MAPE for the 2017Q1–2017Q4 forecast horizon as a measure of accuracy, given that the actual values of CS for 2017 were: 


e. Prepare a Winters' exponential smoothing forecast of CS using data from 1996Q1 through 2016Q4 as the basis for a forecast of 2017Q1-2017Q4. Compare these results in terms of fit and accuracy with the results from the time-series decomposition forecast.

Hint
Accounts & Finance13(c) The mean or average of the absolute percentage mistakes of forecasts is known as MAPE (mean absolute percentage error), which is defined as the total of the individual absolute errors divided by the demand (each period separately). As a result, MAPE has managerial appeal and is a common forecasting metric. The better the forecast, the lower the MAPE....

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