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

question 63

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. Using the estimation results given above,the predicted level of sales in 2022III is _______ units.

• A)141.5
• B)156
• C)172
• D)173.5
• E)none of the above

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Definitions:

Variance

A statistical measure of the dispersion of data points in a data set, indicating how far each data point lies from the mean.

Financial Asset

Any asset that is cash, an equity instrument of another entity, or a contractual right to receive cash or another financial asset.

Risk-free Asset

An investment with zero default risk, often assumed to be government bonds, providing a guaranteed return.