TABLE 16-13
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the 4-year period from 1998 to 2002. The following is the resulting regression equation:
log 1 0 Y ^ = 6.102 + 0.012 X - 0.129 Q 1 - 0.054 Q 2 + 0.098 Q 3
where
Y ^ is the estimated number of contracts in a quarter
X is the coded quarterly value with X = 0 in the first quarter of 1998.
Q 1 is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise.
Q 2 is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.
Q 3 is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Table 16-13, using the regression equation, what is the forecast for the revenues in the third quarter of 2003?

Question

TABLE 16-13 
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the 4-year period from 1998 to 2002. The following is the resulting regression equation:
log 1 0 Y ^  = 6.102 + 0.012 X - 0.129 Q 1   - 0.054 Q 2   + 0.098 Q 3 
where 
Y ^  is the estimated number of contracts in a quarter
X is the coded quarterly value with X = 0 in the first quarter of 1998.
Q 1 is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. 
Q 2  is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise. 
Q 3  is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Table 16-13, using the regression equation, what is the forecast for the revenues in the third quarter of 2003?

Quizplus · Accepted Answer

The Answer of TABLE 16-13 
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the 4-year period from 1998 to 2002. The following is the resulting regression equation:
log 1 0 Y ^  = 6.102 + 0.012 X - 0.129 Q 1   - 0.054 Q 2   + 0.098 Q 3 
where 
Y ^  is the estimated number of contracts in a quarter
X is the coded quarterly value with X = 0 in the first quarter of 1998.
Q 1 is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. 
Q 2  is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise. 
Q 3  is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Table 16-13, using the regression equation, what is the forecast for the revenues in the third quarter of 2003?

TABLE 16-13 A Local Store Developed a Multiplicative Time-Series Model to Forecast