To be able to receive full credit, you must show your computations in the space provided for
Question:
To be able to receive full credit, you must show your computations in the space provided for each question.
The Census Bureau tracks a variety of retail and service sales using the Monthly Retail Trade Survey. Consider the monthly sales (in millions of dollars) from January 2014 through April 2018 for office supply and stationery stores.
Month | Year | Sales |
Jan | 2014 | 1489 |
Feb | 2014 | 1292 |
Mar | 2014 | 1351 |
Apr | 2014 | 1263 |
May | 2014 | 1205 |
Jun | 2014 | 1093 |
Jul | 2014 | 1255 |
Aug | 2014 | 1699 |
Sep | 2014 | 1392 |
Oct | 2014 | 1248 |
Nov | 2014 | 1163 |
Dec | 2014 | 1389 |
Jan | 2015 | 1432 |
Feb | 2015 | 1221 |
Mar | 2015 | 1194 |
Apr | 2015 | 1163 |
May | 2015 | 1103 |
Jun | 2015 | 1056 |
Jul | 2015 | 1160 |
Aug | 2015 | 1586 |
Sep | 2015 | 1314 |
Oct | 2015 | 1148 |
Nov | 2015 | 1073 |
Dec | 2015 | 1285 |
Jan | 2016 | 1247 |
Feb | 2016 | 1136 |
Mar | 2016 | 1171 |
Apr | 2016 | 1099 |
May | 2016 | 1060 |
Jun | 2016 | 982 |
Jul | 2016 | 1026 |
Aug | 2016 | 1544 |
Sep | 2016 | 1251 |
Oct | 2016 | 1032 |
Nov | 2016 | 1007 |
Dec | 2016 | 1169 |
Jan | 2017 | 1228 |
Feb | 2017 | 1004 |
Mar | 2017 | 1096 |
Apr | 2017 | 953 |
May | 2017 | 996 |
Jun | 2017 | 930 |
Jul | 2017 | 962 |
Aug | 2017 | 1446 |
Sep | 2017 | 1123 |
Oct | 2017 | 986 |
Nov | 2017 | 964 |
Dec | 2017 | 1069 |
Jan | 2018 | 1125 |
Feb | 2018 | 940 |
Mar | 2018 | 1008 |
Apr | 2018 | 916 |
1). Regress the monthly sales to a time variable and show the regression output in the space provided below. Interpret the results in terms of explained variability and the significance of the model.
2). Create indicator variables to represent each month as a category. Consider December data as a baseline model. How many indicator variables do we need to recode months as different categories?
3). Explain very briefly the reason why we need indicator variables, in other words why we need to recode each month as a different category and include in the regression analysis?
Cost management a strategic approach
ISBN: 978-0073526942
5th edition
Authors: Edward J. Blocher, David E. Stout, Gary Cokins