stats

7-12: Develop a multiple regression model with categorical variables that incorporate seasonality for forecasting sales using the last three years of data in the Excel file New Car Sales. 

Tips for problem 7-12: This is a multiple regression problem based on monthly data. You will need to create dummy variables for the months to represent seasonality in the model.

Here is a video about the concept:

http://www.youtube.com/watch?v=H07l1zgM-cw

Here is part of what want to do:

Year Month Units t Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
1 Jan 39,810 1 0 0 0 0 0 0 0 0 0 0 0
1 Feb 40,081 2 1 0 0 0 0 0 0 0 0 0 0
1 Mar 47,440 3 0 1 0 0 0 0 0 0 0 0 0
1 Apr 47,297 4 0 0 1 0 0 0 0 0 0 0 0
1 May 49,211 5 0 0 0 1 0 0 0 0 0 0 0
 


You will fill all entries for three years, then run regression in excl.

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