A Forecaster Used the Regression Equation $Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$

question 18

Multiple Choice

A forecaster used the regression equation $Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$ and quarterly sales data for 2004I-2021IV (t = 1,...,64) for an appliance manufacturer to obtain the results shown below.Q is quarterly sales,and $D _ { 1 } , D _ { 2 }$ and $D _ { 3 }$ are dummy variables for quarters I,II,and III. The estimated QUARTERLY increase in sales is ______ units,and the estimated ANNUAL increase in sales is ______ units.

• A)1.5; 6
• B)1.4; 4
• C)30; 4
• D)1.5; 40
• E)none of the above

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Definitions:

Prefix

A syllable or group of syllables added at the beginning of a word to alter its meaning or create a new word, often used in units of measurement.

Stamp Act Congress

A meeting of delegates from several American colonies in 1765, formed to protest the British Stamp Act and organize resistance.

Declaratory Act

A law passed by the British Parliament in 1766 stating that the British government had the same power to tax and make laws for the American colonies "in all cases whatsoever" as it did in Britain.

Stamp Act

Parliament’s 1765 requirement that revenue stamps be affixed to all colonial printed matter, documents, and playing cards; the Stamp Act Congress met to formulate a response, and the act was repealed the following year.