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Table gives the retail sales (in billions of 1996 dollars) of the United States from the first quarter of 1995 to the fourth quarter of 1999. (a) Prepare a table showing sales, a time trend, and dummy variables to take into account seasonal effects. (b) Using the data from the table in part a, run a regression of sales on inventories and the seasonal dummies and interpret the results.
Table Retail Sales in the United States (in Billions of 1996 $)
Sales quarter year
540.5
608.5
606.6
648.3
568.4
632.8
626.0
674.6
587.0
640.2
I
II
III
IV
1995
1996
1997
645.9
686.9
597.0
675.3
663.6
723.3
639.5
716.5
721.9
779.9
1998
1999
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