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##### STATS - Big Boys Appliances

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Question;Consider the following time series data representing quarterly sales of dishwashers at Big Boys Appliances over the past two years:TimeSales2010 Quarter 1252010 Quarter 2852010 Quarter 3642010 Quarter 4302011 Quarter 1702011 Quarter 21252011 Quarter 31052011 Quarter 490The scatter plot of the data above shows seasonality with trend. Hence, a multipleregression model is run to forecast the demand. We denote sales (Y) as the dependvariable, and denote time (t, with represent the first quarter of 2010) and dummyvariables (,, and) as independent variables. Here, we choose quarter 4 as thebaseline and adopt three seasonality dummy variables, such that represents quarter1, represents quarter 2, and represents quarter 3. Answer the following questions.Usea) (5 points) Use the above variable definition to code the data above.TimeSales(Y)Time (t)2010 Quarter 12512010 Quarter 28522010 Quarter 36432010 Quarter 43042011 Quarter 17052011 Quarter 212562011 Quarter 310572011 Quarter 4908b) (5 points) Copy all data into Excel and run the corresponding multiple regression.Write the estimated multiple regression equation use the variables defined above.(Hint: No need to conduct backwards elimination at this point.)c) (5 points) Explain the meaning of the slopes for seasonally dummy variable,,and. (Note: Use actual variable name and numbers to answer the questions. Putnumbers in the right context.)d) (5 points) Test the overall fitness of the model. (State the hypotheses, and useSignificant F to complete your test, use short version of 7 steps.)e) (Bonus 5 points) Which variables in the current regression model are significant?And which are not significant? Justify your answer. (short version of 7 steps)

Paper#61326 | Written in 18-Jul-2015

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