Use the following model to forecast quarterly sales ($ 000) for a start-up (where time is rescaled

Question:

Use the following model to forecast quarterly sales ($ 000) for a start-up (where time is rescaled to begin at zero and Q2, Q3, and Q4 are dummy variables for the indicated quarters), and answer the following questions.
y = 15.1 + 10.5 t - 5.0 Q2 - 7.2 Q3 + 7.5 Q4
a) For the first quarter of the time series, what are the sales?
b) What is the quarter that on average has the lowest level of sales over the time frame of the series?
c) What is the quarter that on average has the highest level of sales over the time frame of the series?
d) Interpret the coefficient of the dummy variable named Q4.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Statistics

ISBN: 9780321925831

3rd Edition

Authors: Norean Sharpe, Richard Veaux, Paul Velleman

Question Posted: