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.