Question: D N A Year 1 E G H J K L M P Q Q3. (30 points) The data shows the Sales Revenue for an

D N A Year 1 E G H J K L M P Q Q3. (30 points)

D N A Year 1 E G H J K L M P Q Q3. (30 points) The data shows the Sales Revenue for an organization for 5 years for each quarter. a. Use mutiple regression model with dummy varaibles as below to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if Qtr1,0 otherwise; Qtr2 = 1 if Qtr2, 0 otherwise; Qtr3 = 1 if Qtr3,0 otherwise; b. Based on (a), compute estimates for quarterly sales for year 6. c. Let Period= 1 refer to observation in quarter 1 of year 1, Period= 2 refer to observation in quarter 2 of year 1, ...Period= 20 refer to observation in quarter 4 of year 5. Based on the dummy variables defined in (a) and the variable Period, develop an equation to account for any seaasonal effects and linear trend in the time series. d. Based on the seasonal effects and the linear trend, compute estimates for quarterly sales for year 6. e. Is the model in (a) or that in '(c), more effective? Give reason. 2 3 B Quarter Revenue 1 20 2 100 3 175 4 13 1 37 2 136 3 245 4 26 1 75 2 155 3 326 4 48 1 92 2 202 3 384 4 82 1 176 2 282 3 445 4 181 4 5

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