A Time Series Regression Equation for a Surfboard Manufacturing Company

question 72

Multiple Choice

A time series regression equation for a surfboard manufacturing company in Australia is given below: Y = 35 + 4Q₁ + 0.5Q₃ + 8Q₄ + 3t
With t in quarters, the origin is December 2010 and Q₁ is the indicator variable for March, Q₃ is the indicator variable for September and Q₄ is the indicator variable for December.
Which of the following is the correct value of the estimate for the number of surfboards sold by this manufacturing company in June 2013?

• A) 68
• B) 77.5
• C) 65
• D) None of these choices are correct

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