ANSWER ALL THREE PROBLEMS

PROBLEM $1$: $4$ POINTS

PROBLEM $2$: $2$ POINTS

NOTE: The above TWO problems are Excel based and given in the Excel file $($also emailed to you as an attachment$).$ Solve those problems in that file itself, save it$,$ and submit it as an Excel file. It is important that you save it as an Excel file ONLY. Otherwise, your Excel formulas cannot be seen and I cannot give you any credit in that case.

PROBLEM $3($Causal Forecasting model$)$: $4$ POINTS $$ SOLVE MANUALLY

NINJA$-$Ninja, Inc. wants to forecast its quarterly sales. Ninja$-$Ninja believes that its sales in a quarter are a function of its total advertising expenditures in the preceding two quarters combined. They have the following data for the past two years:

$.$

Year Quarter Advertising Sales

Expenses Volume $.$

$111230$

$21332$

$31234$

$41331$

$211437$

$21642$

$31746$

$41847.$

$($a$)$ Construct a forecasting model that expresses quarterly sales as a linear function of advertising expenditures in the previous two quarters combined. $(3$ points$)$

$($b$)$ Use your forecasting model from part $($a$)$ to forecast sales in Quarter $1$ of Year $3.(1$ point$)$