2. Using the dummy variable approach, forecast sales for January through December of the fourth year. For this, follow the steps below: a. First, create 11 dummy variables to represent the months January - November. Then use these variables in the regression model only with seasonal effects. b. Next, fit another regression model with both linear trend and seasonal effects. C. Compare these two models with respect to the forecast errors. You can use the "forecast accuracy template" posted on the website for these calculations. d. Based on the "best" model, generate the forecasts mentioned above. e. How would you explain these models and results to Karen? 3. Assume that January sales for the fourth year turn out to be $295,000. What was your forecast error? If this error is large, Karen may be puzzled about the difference between your forecast and the actual sales value. What can you do to resolve her uncertainty about the forecasting procedure?