Question: a) Without Time Time Year 1 Quarter 1 2 3 Q1 1 0 0 93 0 0 0 1 Q3 (43 points) The quarterly sales

a) Without Time Time Year 1 Quarter 1 2 3 Q1 1 0

a) Without Time Time Year 1 Quarter 1 2 3 Q1 1 0

a) Without Time Time Year 1 Quarter 1 2 3 Q1 1 0 0 93 0 0 0 1 Q3 (43 points) The quarterly sales data for Mama's Pizza in NYC over the past 4 years are shown here. The columns for dummy variables Q1, Q2, Q3, and time variable are already set up. 1 2 3 4 5 4 Q2 0 1 0 0 0 1 0 0 0 0 a) (15 points) Obtain quarterly forecasts for year 5 using a regression model without the Time variable. b) (15 points) Obtain quarterly forecasts for year 5 using a regression model with the Time variable, c) (10 points) Which model fits the data better? Argue (3 bonus). 0 0 2 0 Sales 1453 703 2389 2264 1565 771 2664 2124 1615 864 2697 2379 1737 934 2914 2445 1 2 3 3 4 4 1 2 3 0 1 0 0 0 0 0 1 1 0 0 6 7 8 8 9 10 11 3 0 0 0 1 4 0 1 0 0 0 1 0 4 1 3 2 3 4 1 1 0 0 0 0 0 0 1 1 0 12 13 14 15 16 0 0 5 2 3 4 b) With Time Year Sales 1 Quarter 1 2 3 4 1 2 3 Q3 0 0 1 0 0 0 1 N 1453 703 2389 2264 1565 771 2664 2124 1615 864 2697 2379 1737 934 2914 2445 Q1 1 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 0 4 1 2 3 92 0 1 0 0 0 1 0 0 0 1 0 0 0 1 0 0 0 Time 1 2 3 4 5 6 7 8 9 10 11 12 13 3 3 0 0 0 1 0 0 0 0 1 0 4 1 2 3 4 1 2 3 4 4 14 15 16 5

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