The Costello Music Company has been in business for five years. During that time, sales of pianos increased from 12 units in the first year to 50 units in the most recent year. Fred Costello, the firm's owner, wants to develop a forecast of piano sales for the coming year. The historical data follow. Total Yearly Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 Sales 1 4. 1 5 12 4. 14 28 10 3 5 16 34 4. 12 9 22 50 18 10 13 35 76 a. Using time series decomposition, compute the seasonal indexes for the four quarters (to 4 decimals). Quarter Adjusted Seasonal Index 1 2 3 4 b. When does Costello Music experience the largest seasonal effect? The largest effect is in quarter Does this result appear reasonable?

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Types of Bias

Statistics is the study of data collection, organization, analysis, interpretation, and presentation. Statistical bias is a characteristic of a statistical technique or its findings in which the expected value deviates from the actual root quantitative parameter being estimated. According to the actual definition of bias, it refers to the tendency of a statistic to overestimate or underestimate a parameter.