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

question 128

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 third quarter of 2003?

---

Definitions:

Order of Operations

A collection of guidelines in mathematics that specifies the order in which operations are to be executed.

Excel

Microsoft Excel is a spreadsheet application that enables users to manage, structure, and perform calculations on data through formulas within a grid of cells organized into rows and columns.

Basis Theme

A fundamental style or template in software that provides the foundational design and format settings for documents and presentations.

Default Font

The pre-selected or standard font set by a software or document template, used unless changed by the user.