Quarterly sales for a department store over a six-year period are given in the fileP12_52.xlsx.

a.Use multiple regression to develop an equation that can be used to predict future quarterly sales. (Hint: Use dummy variables for the quarters and a time variable for the quarter number, 1 to 24.)

LetXrepresent the quarter number (1-24). LetX₁represent a dummy for first quarters. LetX₂represent a dummy for second quarters. LetX₃represent a dummy for third quarters.

If required, round your answers to one decimal place. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

=______ + _______ X+_______ X₁+_______ X₂+________ X₃

b.LettingY_tbe the sales during quartert, discuss how to estimate the following equation for this series.

HereXis a quarter,X₁is a dummy for first quarters,X₂is a dummy for second quarters, andX₃is a dummy for third quarters.

c.Based on your answer in partbdevelop a model that can be used to predict the logarithm of future quarterly sales.

HereXis a quarter,X₁is a dummy for first quarters,X₂is a dummy for second quarters, andX₃is a dummy for third quarters.

If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)

Log= ______ +______ X+________ X₁+________ X₂+________ X₃

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