Note: All of the data for these problems is in the Revenues.xlsx file that is available on the official web site (www.cengage.com/finance/mayes/analysis/9e) for this book.

Using the TGT Quarterly Sales (target Corp) data:

a. Create a line chart of sales. Do you see a trend? Do you see any seasonality? If so, what is the frequency?

b. Using the procedures detailed in the chapter, decompose the time series into the trend, seasonality, and irregular components.

Using the TGT Quarterly Sales (target corp) data:

Fill a regression model with a time trend and seasonal dummy variables to the sales data.

Is the time trend coefficient statistically significant? How can you tell?

Are the seasonal dummy variables statistically significant? How can you tell?

Using the UNH Quarterly Sales data (united health Group):

Create a line chart of sales. Do you see a trend?

Do you see any seasonality? If so, what is the frequency, and what quarter typically has the highest sales?

Create a forecast for United Health Group's sales for June 2019 using the SES model.

Create a forecast for United Health Group's sales for June 2019 using the LES model.

Which of the two models fits the data better based on MSE?