Quarterly sales for a department store over a six-year period are given in the file P12_52.xlsx. a.

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Quarterly sales for a department store over a six-year period are given in the file P12_52.xlsx.

a. Use multiple regression to develop an equation that can be used to predict future quarterly sales. (Hint: Use dummy variables for the quarters and a time variable for the quarter number, 1 to 24.)

Let X represent the quarter number (1-24).
Let X₁ represent a dummy for first quarters.
Let X₂ represent a dummy for second quarters.
Let X₃ represent a dummy for third quarters.

If required, round your answers to one decimal place. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

Ŷ =______ + _______ X +_______ X₁ +_______ X₂ +________ X₃

b. Letting Yt be the sales during quarter t, discuss how to estimate the following equation for this series.

Yt= abt1b2x1b3x2b4x3

Here X is a quarter, X1 is a dummy for first quarters, X2 is a dummy for second quarters, and X3 is a dummy for third quarters.

c. Based on your answer in part b develop a model that can be used to predict the logarithm of future quarterly sales.

Here X is a quarter, X₁ is a dummy for first quarters, X₂ is a dummy for second quarters, and X₃ is a dummy for third quarters.

If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

LogŶ = ______ +______ X +________ X₁ +________ X₂ +________ X₃

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