Consider the Following Set of Quarterly Sales Data, Given in Thousands

question 110

Short Answer

Consider the following set of quarterly sales data, given in thousands of dollars.
The following dummy variable model that incorporates a linear trend and constant seasonal variation was used: y(t) = β₀ + β_1t + β_Q1(Q1) + β_Q2(Q2) + β_Q3(Q3) + E_t. In this model, there are three binary seasonal variables (Q1, Q2, and Q3), where Qi is a binary (0,1) variable defined as:
Qi = 1, if the time series data is associated with quarter i;
Qi = 0, if the time series data is not associated with quarter i.
The results associated with this data and model are given in the following Minitab computer output.
The regression equation is
Sales = 2442 + 6.2 Time − 693 Q1 − 1499 Q2 + 153 Q3
Analysis of Variance
Provide a managerial interpretation of the regression coefficients for the variables Q1 (quarter 1), Q2 (quarter 2), and Q3 (quarter 3).

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Definitions:

Collectivist

Pertaining to cultures or societies that prioritize the group over individual interests, emphasizing community, cooperation, and interdependence.

Projection

A defense mechanism in which unwanted feelings are displaced onto another person, where they then appear as a threat from the external world.

Sublimation

Sublimation is a defense mechanism proposed by Freud in which socially unacceptable impulses or idealizations are transformed into socially acceptable actions or behavior, possibly resulting in a long-term conversion of the initial impulse.

Displacement

In psychology, a defense mechanism where an individual shifts negative feelings from the original source to a safer or more acceptable target.