Question: After fitting a regression model on a quarterly sales data, we obtain the following model: y=9+10t+3DQ2- 4DQ3+2DQ4 where: y is quarterly sales in million

After fitting a regression model on a quarterly sales data, we obtain the following model: y=9+10t+3DQ2-

After fitting a regression model on a quarterly sales data, we obtain the following model: y=9+10t+3DQ2- 4DQ3+2DQ4 where: y is quarterly sales in million dollars t is the sequential quarter numbers, and DQ2,DQ3, and DQ4 are dummy variables for quarters 2, 3 and 4, respectively. Note that quarter 1 is assumed as the base period; therefore there is no dummy variable for quarter 1. What is the forecast sales in quarter 2, year 4 (t=14)? What is the forecast sales in quarter 1, year 4 (t=13)? Referring to the problem statement above, what is the seasonality effect of quarter 3 vs. quarter 2 on sales? Referring to the problem statement above, what is the seasonality effect of quarter 3 vs. quarter 1 on sales?

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