Year  Quarter  Sales ($000) 
2015  1  $400 
2015  2  2,000 
2015  3  3,500 
2015  4  260 
2016  1  740 
2016  2  2,720 
2016  3  4,900 
2016  4  520 
2017  1  1,500 
2017  2  3,100 
2017  3  6,520 
2017  4  960 
2018  1  1,840 
2018  2  4,040 
2018  3  7,680 
2018  4  1,640 
2019  1  3,520 
2019  2  5,640 
2019  3  8,900 
2019  4  3,620 
Problem 2
House Depot’s quarterly sales of a lawn, landscaping, and gardening items – like lawnmowers, fertilizers, lawn tractors, weed killers, etc. – The data is for the years 2015 thru 2019.
Write the estimated regression equation below.
You need not show the computer output of the regression model. However, you need to comment on model results. What is the value of R^{2}? What can you say about the value of significant F?
Provide the following forecasts using the model developed above. Fill in the values in the table provided.
Year 2020 
Year 2023 

Quarter 1 

Quarter 2 

Quarter 3 

Quarter 4 
Write the estimated regression equation below.
You need not show the computer output of the regression model. However, you need to comment on model results. What is the value of R^{2}? What can you say about the value of significant F?
Provide the following forecasts using the model developed above. Fill in the values in the table provided.
Year 2020 
Year 2023 

Quarter 1 

Quarter 2 

Quarter 3 

Quarter 4 
1. The time series plot is:
There is a seasonal pattern with seasonality.
2. The estimated regression equation is:
y = 1400 + 200*Q1 + 2100*Q2 + 4900*Q3
R² = 0.662
The model is significant. (p = 0.0005 < 0.05)
Year 2020  Year 2023  
Quarter 1  1,600.0000  1,600.0000 
Quarter 2  3,500.0000  3,500.0000 
Quarter 3  6,300.0000  6,300.0000 
Quarter 4  1,400.0000  1,400.0000 
3. The estimated regression equation is:
y = 1402 + 900.5*Q1 + 2567*Q2 + 5133.5*Q3 + 233.5*t
R² = 0.960
The model is significant. (p = 0.0000 < 0.05)
Year 2020  Year 2023  
Quarter 1  4402  7204 
Quarter 2  6302  9104 
Quarter 3  9102  11904 
Quarter 4  4202  7004 
4. The model with a trend because it is including the year factor.
Get Answers For Free
Most questions answered within 1 hours.