TABLE 16-13 a Local Store Developed a Multiplicative Time-Series Model to Model

question 17

Short Answer

TABLE 16-13
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the 4-year period from 1998 to 2002. The following is the resulting regression equation:
log₁₀Y^{^} = 6.102 + 0.012 X - 0.129 Q₁ - 0.054 Q₂ + 0.098 Q₃
where
Y^{^} is the estimated number of contracts in a quarter
X is the coded quarterly value with X = 0 in the first quarter of 1998.
Q₁ is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise.
Q₂ is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.
Q₃ is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Table 16-13, using the regression equation, what is the forecast for the revenues in the first quarter of 2005?

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Definitions:

Passivity

In context, it refers to the lack of active responses or actions in a situation, leading to acceptance of circumstances without attempt to change them.

Cliques

Social groups that are often exclusive and unified, formed around common interests or friendships, and are characterized by strong in-group loyalty.

Intimate Friendships

Close personal relationships marked by a deep level of understanding, trust, and emotional connection.

Crowds

Large groups of people gathered together, often for a common purpose or event.