WEB SITE (www.cengage.com/finance/mayes/analysis/9e)

1. using the TGT Quarterly Sale (Target Corp) data:

a. Create a line chart of sales. Do you see a trend? Do you see any seasonality? If so, what is the frequency?

b. Using the procedures detailed in the chapter, decompose the time series into the trend seasonality, and irregular components.

c. WHich of the time series methodologies discussed in the chapter would likely be the most appropriate for forecsting Targets Sales?

2. Using the TGT Quarterly Sale data:

a. Fit the sale data using the Holt_Winter Additive Seasonal model, and optimize the smoothing constants with the solver.

b. Use the Forecast Sheet button to create a forecast worksheet.

C. Which model performs better based on the MSE?

3. Using the TGT Quarterly Sale data:

a. Fit a regression model with a time trend and seasonal dummy variables to the sales data.

b. Is the time trend coefficient statistically significant? How can you tell?

c. Are the seasonal dummy variables statistically significant? How can you tell?