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

question 1

Multiple Choice

Refer to the following:
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 1996I-2013IV (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.
$$\begin{array} { | l l l l l l } \hline \text { DEPENDENTVARIAELE: } & \text { aT } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ON F } \\\text { OESERVATIONS: } & 64 & \text { 0.8768 } & 107.982 & 0.0001 & \\& & \text { PARAMETER } & \text { STANDARD } & & \\\text { VARIAELE } & & \text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & & 30.0 & 12.8 & 2.34 & 0.0224 \\\text { T } & & 1.5 & 0.70 & 2.14 & 0.0362 \\\text { D1 } & & 10.0 & 3.0 & 3.33 & 0.0015 \\\text { D2 } & & 25.0 & 7.2 & 3.47 & 0.0010 \\\text { D3 } & & 40.0 & 15.8 & 2.53 & 0.0140 \\\hline\end{array}$$
-What is the estimated intercept of the trend line in the second quarter?

• A) 25
• B) 26.6
• C) 55
• D) 65
• E) none of the above

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Definitions:

Cohesion

The degree of camaraderie or bond among members of a group, contributing significantly to its unity and functional success.

Performance

Refers to the act of executing a task or function, often measured against preset known standards of accuracy, completeness, cost, and speed.

Multi-component

Pertains to something that is composed of multiple elements or parts.

Cohesion

The extent to which members of a group or community are united in pursuing common goals or supporting each other.