Use the case below to answer the following question(s) (Totalmarks = 100)
A certain restaurant located in a resort community is owned andoperated by Karen Payne. The restaurant just completed its thirdyear of operation. During this time, Karen sought to establish areputation for the restaurant as a high quality diningestablishment that specialises in fresh seafood. The efforts madeby Karen and her staff proved succesful, and her restaurant iscurrently one of the best and fastest-growing restaurant in theirneighbourhood. Karen concluded that, to plan better for the growthof the restaurant in the future, she needs to develop a system thatwill enable her to forecast food and beverage sales by month for upto one year in advance. Karen compiled the following data on totalfood and beverages sales for the three years of operation.
Food and beverage sales for the restaurant(R1000s):
| Month | First year | Second year | Third year |
| January | 242 | 263 | 282 |
| February | 235 | 238 | 255 |
| March | 232 | 247 | 265 |
| April | 178 | 193 | 205 |
| May | 184 | 193 | 210 |
| June | 140 | 149 | 160 |
| July | 145 | 157 | 166 |
| August | 152 | 161 | 174 |
| September | 110 | 122 | 126 |
| October | 130 | 130 | 148 |
| November | 152 | 167 | 173 |
| December | 206 | 230 | 235 |
Perform an analysis of the sales data for the restaurant.Prepare a report for Karen that summarises your findings,forecasts, and recommendations. Include the following:
(i) A graph of the time series
(ii) An analysis of the seasonality of the data. Indicate theseasonal indexes for each month, and comment on the high seasonaland low seasonal sales months. Do the seasonal indexes makeintuitive sense. Discuss
(iii) Stating any assumptions you make make, provide forecastsales for January through December of the fourth year
(iv) Recommendations as to when the system that you developedshould be updated to account for new sales data that will occur
