Answer Happy

A major source of revenue in Texas is a state sales tax oncertain types of goods and services.Data are compiled and the state controller uses them to projectfuture revenues for the statebudget. One particular category of goods is classified as RentalTrade. Four years of quarterlydata (in $millions) for one particular area of southeast Texasfollow:Quarter Year 1 Year 2 Year 3 Year 4Quarter 1 218 225 234 250Quarter 2 247 254 265 283Quarter 3 243 255 264 289Quarter 4 292 299 327 3561) Compute seasonal indices for each quarter based onCMA.2) Deseasonalize the data. i.e. remove the seasonality andshow data with onlythe trend component.3) Find the trend line equation using the regression analysis inExcel for thedata in 2)4) Forecast the sales for each quarter of year 5 using the trendline equationobtained from 3) (note: this is not the final forecast. The finalforecast will be done in 5).5) Apply the seasonal indices to the forecasts found in part4) to obtain the finalforecasts for each quarter of year 5.