Question 13.26

13.26 Existing home sales.

Continue the previous exercise.

hsales

  1. Make indicator variables for the months of the year, and fit a linear trend along with 11 indicators to the data series. Report your estimated model.

    680

  2. Based on the fit, make a forecast for the number of existing homes sold for July 2014.
  3. Based on the regression output, which variables appear not to be contributing significantly to the fit? Rerun the regression without those variables and report your estimated model.