DRQ #11 November 10, 2011 (4pts) 1. Suppose that liquor sales is estimated using a seasonal model given by: Liquor Sales = 30 + 3*FALL + 5*SPRING – 2*SUMMER, where Fall, Spring, and Summer are dummy variables. Winter is the base season. (0.5pt) (a) Our forecast for liquor sales in the winter is __________ ? (0.5pt) (b) Our forecast for liquor sales in the spring is __________ ? (2.0pts) (c) Suppose now that the base season is the Summer. What are the new coefficient values in the regression, Liquor Sales = b0 + b1FALL + b2SPRING + b3WINTER + et? 2. Suppose the total sales for a local grocery store from Monday to Friday are given as: Day Monday Tuesday Wednesday Thursday Friday Amount $90,000 $95,000 $98,000 $100,000 $105,000 (0.5pt) (a) Give the general model representation of a MA(2) process. (0.5pt) (b) Calculate the MA(2) prediction sales for Thursday.