Given the following time-series regression model below, wher…
Given the following time-series regression model below, where Qtr_1, Qtr_2, Qtr_3 are dummies for quarters 1,2, and 3 respectively. Consider that you have four quarters reflecting the seasonality. Sales = 1250.74 + 2345.58 Qtr_1 – 1070.65 Qtr_2 – 1238.93 Qtr_3 + 910.6 Period When forecasting future sales, discuss under which conditions you should include or not include the intercept. This question is not unique to a time series regression. It can also be about the intercept of any regression.