Only E and F help needed 4. You work at Amazon in its worldwide music division a
ID: 1107480 • Letter: O
Question
Only E and F help needed
4. You work at Amazon in its worldwide music division and have been tasked with providing quarterly sales estimates for the future. You asked the accounting department to provide you with quarterly sales data starting in the 1st quarter of 2014 and extending to the 3rd quarter of 2017 Those data (S millions) showed a sale's spike every 4h quarter, so you decide to use excel to run a regression with a dummy variable to estimate quarterly sales. a. In an excel spreadsheet, copy the data below, and create a scatter graph showing quarterly sales. (4 pts.) Year Quarter Quarterly Sales 2014 1 750 800 2015 1 800 950 1650 2016 1 1100 1800 2017 1 1150 b. Does it appear that quarterly sales spike every 4 quarter? (Why might this be?) 2 pts. c. Show the complete data you would use to run a quarterly sales regression with a 4th quarter dummy variable. (4 pts.) d. Using your data, run a regression that would provide an estimation of future quarterly sales. e. Using the regression output, what is the general estimating equation for quarterly sales? (2 f. Using that general estimating equation, what is your specific estimate for 4 quarter sales in Show the regression output. (4 pts.) pts.) 2017 (S millions) AND FOR EACH quarter in 2017? (5 pts.)Explanation / Answer
e) the regression equation will be obtained using the coefficiients. The equation is
sales = 1650-762.5*Q1 - 650*Q2 -587.5* Q3
f) sales in fourth quarter will be obtained by putting Q1=Q2=Q3 =0.That is Q4 sales = 1650.
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