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

question 44

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. In any given year,quarterly sales tend to vary as follows:

• A)Q_I > Q_II > Q_III > Q_IV
• B)Q_I > Q_II > Q_IV > Q_III
• C)Q_II > Q_III > Q_IV > Q_I
• D)Q_III > Q_II > Q_I > Q_IV
• E)Q_III > Q_IV > Q_II > Q_I

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Definitions:

Sound Waves

Vibrations that travel through air or another medium, which can be heard when they reach a person's or animal's ear.

Vestibulocochlear Nerve

The eighth cranial nerve that transmits sound and equilibrium (balance) information from the inner ear to the brain.

Auditory Tube

Also known as the Eustachian tube, it connects the middle ear to the nasopharynx and helps equalize pressure between the middle ear and the atmosphere.

Seasonal Inventory

Inventory stockpiled in anticipation of seasonal demand peaks to ensure adequate supply and optimal service levels.