SCENARIO 16-14 A contractor developed a multiplicative time-series model to forecast the number of contracts in future quarters, using quarterly data on number of contracts during the 3-year period from 2011 to 2013.The following is the resulting regression equation: where
is the estimated number of contracts in a quarter. X is the coded quarterly value with X = 0 in the first quarter of 2011.
is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. Q
is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.
is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Scenario 16-14, to obtain a forecast for the first quarter of 2014 using the model, which of the following sets of values should be used in the regression equation?
A) X = 12,
B) X = 12,
C) X = 13, Q
D) X = 13,
Correct Answer:
Verified
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