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

question 21

Short Answer

forecaster used the following regression equation $Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$ and quarterly sales data during 2005II-2013IV (t = 1, ..., 35) for an appliance manufacturer to obtain the estimation results shown below. Q is quarterly sales, and $D _ { 1 } , D _ { 2 }$ ,and $D _ { 3 }$ are seasonal dummy variables for quarters I, II, and III.
$$\begin{array} { l l l l l l } \text { DEPENDENTVARIAELE: } & \text { QT } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ON F } \\\text { OESERVATIONS: } & \text { 35 } & \text { 0.9219 } & \text { 88.54 } & \mathbf { 0 . 0 0 0 1 } & \\& & \text { PARAMETER } & \text { STANDARD } & & \\\text { VARIAELE } & & \text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & & 21.0 & \mathbf { 6 . 2 } & \mathbf { 3 . 3 9 } & \mathbf { 0 . 0 0 1 9 } \\\text { T } & & \mathbf { 0 . 9 0 } & \mathbf { 0 . 2 4 } & \mathbf { 3 . 7 5 } & \mathbf { 0 . 0 0 0 7 } \\\text { D9 } & & - \mathbf { 8 . 0 } & \mathbf { 2 . 6 0 } & - \mathbf { 3 . 0 8 } & \mathbf { 0 . 0 0 4 3 } \\\text { D2 } & & - \mathbf { 6 . 0 } & 1.80 & - \mathbf { 3 . 3 3 } & \mathbf { 0 . 0 0 2 2 } \\\text { D3 } & & - 4.0 & \mathbf { 0 . 6 0 } & \mathbf { - 6 . 6 7 } & \mathbf { 0 . 0 0 0 1 }\end{array}$$
a. At the 2 percent level of significance, the critical value of the t-statistic is _______.
The parameter estimate of a ________ (is, is not) statistically significant.
The parameter estimate of b ________ (is, is not) statistically significant.
The parameter estimate of
$c _ { 1 }$ ________ (is, is not) statistically significant.
The parameter estimate of
$c _ { 2 }$ ________ (is, is not) statistically significant.
The parameter estimate of
$c _ { 3 }$ ________ (is, is not) statistically significant.
b. The statistical estimates indicate a(n) ___________ (upward, downward) trend in sales of _________ units per quarter year.
c. The estimated intercepts for each of the four quarters are:
Intercept for quarter 1 is __________.
Intercept for quarter 2 is __________.
Intercept for quarter 3 is __________.
Intercept for quarter 4 is __________.
d. The forecasted sales for the 1^st quarter of 2014 are ___________ units.
The forecasted sales for the 2^nd quarter of 2014 are ___________ units.
The forecasted sales for the 3^rd quarter of 2014 are ___________ units.
The forecasted sales for the 4^th quarter of 2014 are ___________ units.

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Definitions:

Newsstand Sales

Revenue generated from selling publications, such as newspapers and magazines, directly to consumers through newsstands.

Adjusting Entry

An entry made in the accounting journals at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Financial Statements

Financial Statements are formal records of the financial activities and position of a business, person, or entity, including the balance sheet, income statement, and statement of cash flows.

Yearly Subscriptions

Recurring payments made on an annual basis for continued access to a product or service.