1. Was Jim's use of a dummy variable correct?
2. Was it correct for Jim to use sales lagged one week as a predictor variable?
3. Do you agree with Jim's conclusions?
4. Would another type of forecasting model be more effective for forecasting weekly sales?
Jim Price, at the time he was completing his M.B.A. degree, worked at a small restaurant near Marquette University in Milwaukee, Wisconsin. One day the restaurant manager asked Jim to report to her office. She indicated that she was very interested in forecasting weekly sales and wanted to know whether Jim would help. Since Jim had just taken an advanced statistics course, he said that he would enjoy the challenge.