Problem 3 -REM

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R.E.M. has been a leading band since 1981. After performing for 10 years, their sales skyrocketed with their seventh album, Out of Time, which featured the hit single, “Losing My Religion.”

Here are the worldwide sales figures of their albums since that time

Year                       Title                                                                       Worldwide Sales (Millions)

1991                       Out of Time                                                        13

1992                       Automatic for the People                             18

1994                       Monster                                                              10

1996                       New Adventures in Hi Fi                                               5.5

1998                       Up                                                                          3

2001                       Reveal                                                                  4

2003                       Best of R.E.M.                                                   5

2004                       Around the Sun                                                                2

a. Based on this information, what sales figure would you forecast for the next R.E.M. album?

b. What forecasting method makes sense in this instance?

c. What are some of the variables that go into album sales?

Please Show all formula