# Question

Suppose an autoregressive model is used to model sales for a company that peaks twice per year (in June and December).

a) What lagged variables would you try in a regression to forecast sales? Explain.

b) How would you determine which of your lagged variables should remain in the model? Explain.

a) What lagged variables would you try in a regression to forecast sales? Explain.

b) How would you determine which of your lagged variables should remain in the model? Explain.

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