Question: PROBLEM 3 ( Causal Forecasting model ) : 4 POINTS - SOLVE MANUALLY NINJA - Ninja, Inc. wants to forecast its quarterly sales. Ninja -

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 ex penditures in the preceding two quarters combined. They have the
following data for the past two years:
(a) Construct a forecasting model that ex presses quarterly sales as a linear function of advertising
ex penditures in the previous two quarters com bined. (3 points)
(b) Use your forecasting model from part (a) to forecast sales in Quarter 1 of Year 3.(1 point)
PROBLEM 3 ( Causal Forecasting model ) : 4 POINTS

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