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For question A, the options are (trend/without trend) and R2/Adjusted R2) Please answer both question a and b. Thank you! Vacation destinations often run on
For question A, the options are (trend/without trend) and R2/Adjusted R2) Please answer both question a and b. Thank you!
Vacation destinations often run on a seasonal basis, depending on the primary activities in that location. Amanda Wang is the owner of a travel agency in Cincinnati, Ohio. She has built a database of the number of vacation packages (Vacation) that she has sold over the last 12 years. The accompanying file includes quarterly data on the number of vacation packages sold. a. Estimate the linear regression models using seasonal dummy variables with and without the trend term. Which is the preferred model? \begin{tabular}{|c|c|c|} \hline Yex & Quarer & Vaculen \\ \hline 2008 & 1 & SSO \\ \hline 2008 & 2 & 197 \\ \hline 2008 & 3 & 1364 \\ \hline 2008 & 4 & 723 \\ \hline 2009 & 1 & 1034 \\ \hline 2009 & 2 & 634 \\ \hline 2009 & 3 & 1499 \\ \hline 2009 & 4 & 1175 \\ \hline 2010 & 1 & 259 \\ \hline 2010 & 2 & 500 \\ \hline 2010 & 3 & 1407 \\ \hline 2010 & 4 & 594 \\ \hline 2011 & 1 & 533 \\ \hline 2011 & 2 & 330 \\ \hline 2011 & 3 & 1442 \\ \hline 2011 & 4 & 830 \\ \hline 2012 & 1 & 390 \\ \hline 2012 & 2 & 1053 \\ \hline 2012 & 3 & 1742 \\ \hline 2012 & 4 & 833 \\ \hline 2013 & 1 & 831 \\ \hline 2013 & 2 & 459 \\ \hline 2013 & 3 & 1707 \\ \hline 2013 & 4 & 842 \\ \hline 2014 & 1 & 721 \\ \hline 2014 & 2 & 819 \\ \hline 2014 & 3 & 1118 \\ \hline 2014 & 4 & 570 \\ \hline 2015 & 1 & 666 \\ \hline 2015 & 2 & 825 \\ \hline 2015 & 3 & 1265 \\ \hline 2015 & 4 & 564 \\ \hline 2016 & 1 & 282 \\ \hline 2016 & 2 & 542 \\ \hline 2016 & 3 & 1631 \\ \hline 2016 & 4 & 1078 \\ \hline 2017 & 1 & 601 \\ \hline 2017 & 2 & 919 \\ \hline 2017 & 3 & 1164 \\ \hline 2017 & 4 & $26 \\ \hline 2018 & 1 & 455 \\ \hline 2018 & 2 & 462 \\ \hline 2018 & 3 & 1171 \\ \hline 2018 & 4 & 604 \\ \hline 2019 & 1 & 716 \\ \hline 2019 & 2 & 779 \\ \hline 2019 & 3 & 1333 \\ \hline 2019 & 4 & 973 \\ \hline & & \\ \hline & & \\ \hline \end{tabular} b. Use the preferred model to forecast the quarterly number of vacation packages sold in the first two quarters of 2020. Note: Round coefficient estimates to at least 4 decimal places and final answers to 2 decimal placesStep by Step Solution
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