Question

A forecaster used the regression equation

Q_t = a + bt + c₁D₁ + c₂D₂ + c₃D₃

and quarterly sales data for 1998I-2016IV (t = 1, ...,72) for an appliance manufacturer to obtain the results shown below.  Q is quarterly sales, and D₁, D₂, and D₃ are dummy variables for quarters I, II, and III.

DEPENDENT VARIABLE: QT OBSERVATIONS: 72 R-SQUARE 0.8798 F-RATIO 122.547 P-VALUE ON F 0.0001 PARAMETER ESTIMATE STANDARD ERROR VARIABLE T-RATIO P-VALUE INTERCEPT 36 2.5 D1 D2 D3 12.0 30.0 45.0 12.54 0.860 3.26 10.68 18.45 2.87 2.91 3.68 2.81 2.44 0.0055 0.0049 0.0005 0.0066 0.0174

Using the estimation results given above, the predicted level of sales in 2019III is _______ units.

201

288.5

252.5

231.5

A forecaster used the regression equation

Q_t = a + bt + c₁D₁ + c₂D₂ + c₃D₃

and quarterly sales data for 1998I-2016IV (t = 1, ...,72) for an appliance manufacturer to obtain the results shown below.  Q is quarterly sales, and D₁, D₂, and D₃ are dummy variables for quarters I, II, and III.

Using the estimation results given above, the predicted level of sales in 2018I is _______ units. *

230.5

240.5

194.5

218.5

A forecaster used the regression equation

Q_t = a + bt + c₁D₁ + c₂D₂ + c₃D₃

and quarterly sales data for 1998I-2016IV (t = 1, ...,72) for an appliance manufacturer to obtain the results shown below.  Q is quarterly sales, and D₁, D₂, and D₃ are dummy variables for quarters I, II, and III.

The estimated QUARTERLY increase in sales is ______ units.

87

2.5

12

36

Answer 1

2 Year (Guaster) 19481 1998 11 १११8 m. 19984 १११ । 3 12 33 74 15 76 2016 TV 2012 1 2017 IL 2017 IT 2017V 2018T 2018 | 2018 2013 20191 70 78 19 80 81

2019 IL 2019 2014 D 2020 I 83 84 85 et = at bt + D+ CD 2 + (3 D3 a=36, 6-2.5, c, = 12, (2=30, C3= 45. = 36+ 2.5t + 12D + 30 D2 + 45 D3 Predicted level of sales in 2019 11 2019 lt is 83 In this cade D = D2 = 0 and D3 = 1 because 2014 11 represent thid guarder of year 2019 put Die D.=0, D3=1 , t = 83 in eg > <h4 = 36+ 2,5 (83) + 1200 1306) + 45 Ota 36 + 207.5 +45 fet à 288.5 Predreted a level of sales in 2014 il is 238.5 fenomor upton (B). 2. Predicted learl of sales in 2018 1 2018 I is represted by t = 77, and Di= 1, D2 = D3= 0.

out t=71, DI- I and Do z Dz=0 in egyshon 2 = 36+ 2.5t + 12 Dit 302 + 45 Dz. 004 236 +2.5 (71) + 12 (1) + 30 (0) + 45 () et = 36+ 192.5 +12 On - 24015 Producted level of sales in 2018 lis 240.5 Answer ophon (B) 3. The estimated Quarterly incorude in sales is 2.5 units The cerefficient of variable ' t' is 2.5. Therefore the estimated guvodely increade in sales would be 2.5 units awuer. uption (B) Please Rade my wook: .