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Quarterly snow blower sales ($ thousands) along with income ($ billions) are collected from March 2007 through December 2016 (Snow blower sales data.xlsx) Using income

  1. Quarterly snow blower sales ($ thousands) along with income ($ billions) are collected from March 2007 through December 2016 ("Snow blower sales data.xlsx")
    1. Using income and seasonality (where the first quarter is the baseline group), fit a regression model to forecast quarterly sales. Provide the equation of the line fit and interpret the slope parameters
    2. Evaluate the model
    3. Check the model assumptions
    4. If income was $650 (billion) during the third quarter, what would be the forecasted snow blower sales?

DATA:

Period Sales Income
Mar-07 72962 218
Jun-07 81921 237
Sep-07 97729 263
Dec-07 142161 293
Mar-08 145592 318
Jun-08 117129 359
Sep-08 114159 404
Dec-08 151402 436
Mar-09 153907 475
Jun-09 100144 534
Sep-09 123242 574
Dec-09 128497 622
Mar-10 176076 667
Jun-10 180440 702
Sep-10 162665 753
Dec-10 220818 796
Mar-11 202415 858
Jun-11 211780 870
Sep-11 163710 934
Dec-11 200135 1,010
Mar-12 174200 1,066
Jun-12 182556 1,096
Sep-12 198990 1,162
Dec-12 243700 1,187
Mar-13 253142 1,207
Jun-13 218755 1,242
Sep-13 225422 1,279
Dec-13 253653 1,318
Mar-14 257156 1,346
Jun-14 202568 1,395
Sep-14 224482 1,443
Dec-14 229879 1,528
Mar-15 289321 1,613
Jun-15 266095 1,646
Sep-15 262938 1,694
Dec-15 322052 1,730
Mar-16 313769 1,755
Jun-16 315011 1,842
Sep-16 264939 1,832
Dec-16 301479 1,882

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