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Used car dealerships generally have sales quotas that they strive to hit each month, quarter, and calendar year. Consequently, buying a used car toward the
Used car dealerships generally have sales quotas that they strive to hit each month, quarter, and calendar year. Consequently, buying a used car toward the end of those periods presents a great opportunity to get a good deal on the car. The accompanying file includes monthly sales data for used cars Cars from
Click here for the Excel Data File
a Estimate the linear regression models using seasonal dummy variables with and without the trend term. Which is the preferred model?
With trend. based on the value of
adjusted
b Use the preferred model to forecast used car sales in the first two months of
Note: Round coefficient estimates to at least decimal places and final answers to decimal places.
tableMonthForecastMonth Month
tableABCDDate,Cars,,JanuaryFebruaryMarchAprilMayJuneJulyAugust SeptemberOctoberNovemberDecemberJanuarFebruaryMarchApril MarJuneJulyAugustSeptermberOctoberNovemberDecember LanuaryFebruayMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember JanuaryFebruanMarchAprilMayJunesulyAugustSeptember OctoberNovember DecemberJanuaryFebruaryMarch April
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