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Exhibit 18

Question 17

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Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel. )Using MSE and MAD,compare the linear trend equation with seasonal dummy variables, , and the decomposition method equation, with and the quarterly seasonal indices: 0.9322,1.0066,0.9441,and 1.1171.Which of the two corresponding forecasting models is recommended? Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel. )Using MSE and MAD,compare the linear trend equation with seasonal dummy variables, , and the decomposition method equation, with and the quarterly seasonal indices: 0.9322,1.0066,0.9441,and 1.1171.Which of the two corresponding forecasting models is recommended? The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β0 + β1Qtr1 + β2Qtr2 + β3Qtr3 + β4t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel. )Using MSE and MAD,compare the linear trend equation with seasonal dummy variables, , and the decomposition method equation, with and the quarterly seasonal indices: 0.9322,1.0066,0.9441,and 1.1171.Which of the two corresponding forecasting models is recommended? Refer to Exhibit 18.8.(Use Excel. )Using MSE and MAD,compare the linear trend equation with seasonal dummy variables, Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel. )Using MSE and MAD,compare the linear trend equation with seasonal dummy variables, , and the decomposition method equation, with and the quarterly seasonal indices: 0.9322,1.0066,0.9441,and 1.1171.Which of the two corresponding forecasting models is recommended? ,
and the decomposition method equation, Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel. )Using MSE and MAD,compare the linear trend equation with seasonal dummy variables, , and the decomposition method equation, with and the quarterly seasonal indices: 0.9322,1.0066,0.9441,and 1.1171.Which of the two corresponding forecasting models is recommended? with Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.(Use Excel. )Using MSE and MAD,compare the linear trend equation with seasonal dummy variables, , and the decomposition method equation, with and the quarterly seasonal indices: 0.9322,1.0066,0.9441,and 1.1171.Which of the two corresponding forecasting models is recommended? and the quarterly seasonal indices: 0.9322,1.0066,0.9441,and 1.1171.Which of the two corresponding forecasting models is recommended?

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MSE = 3.50 and MAD = 1.53 for ...

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