The following data represent a portion of quarterly net sales (in millions of dollars) of Lowe's Companies,

Question:

The following data represent a portion of quarterly net sales (in millions of dollars) of Lowe's Companies, Inc., over the past five years.

a. Estimate a linear trend model with seasonal dummy variables and compute the MSE and MAD.
b. Estimate an exponential trend model with seasonal dummy variables and compute the MSE and MAD.
c. Which model is more appropriate? Use this model to forecast net sales for Lowe's Companies, Inc., for fiscal year 2009.