Solutions Statistics

A forecaster used the following regression equation Q t = a + bt + c 1 D1 + c2D2 + c3D3 and quarterl

Question: A forecaster used the following regression equation

Q t = a + bt + c 1 D1 + c2D2 + c3D3

and quarterly sales data during 1999II to 2007IV (t=1,…,35) for an stove manufacturer to obtain the estimation results shown below. Q is quarterly sales, and D1, D2, and D3 are seasonal dummy variables for quarters I, II, and III.

DEPENDENT VARIABLE: QT R-SQUARE F-RATIO P-VALUE ON F
OBSERVATIONS: 35 0.9219 88.54 0.0001
PARAMETER STANDARD
VARIABLE ESTIMATE ERROR T-RATIO P-VALUE
INTERCEPT 21.0 6.2 3.39 0.0019
T 0.90 0.24 3.75 0.0007
D1 -8.0 2.60 -3.08 0.0043
D2 -6.0 1.80 -3.33 0.0022
D3 -4.0 0.60 -6.67 0.0001

a. Do the statistical estimates indicate a trend in sales? If so, what is the trend in units per quarter? Explain.

b. What are the estimated intercepts for each of the four quarters? Explain.

c. What level of sales are forecasted sales for the 1st, 2nd, 3rd, and 4th quarters of 2008? Explain.

Price: $2.99
Solution: The solution file consists of 3 pages
Solution Format: Word Document


∴ Other downloads you may be interested in ∴

log in to your account

Forgot password?
Don't have a membership account?
REGISTER

reset password

Back to
log in

sign up

Back to
log in