Quarterly Sales Revenue (In $Millions) for a Particular Company Has

question 88

Essay

Quarterly sales revenue (in $millions) for a particular company has been modelled using linear regression with indicator variables:
Y = 132 + 2Q1 + 3Q2 - 5Q4 + 2t
Where t is time in quarters, with origin March 2006 and Q1, Q2 and Q4 are the indicator variables for March, June and December quarters, respectively.
(a) What is the estimate for December quarter of 2011?
(b) What is the estimate for March 2011?
(c) Separate the differences from your two estimates in parts (a) and (b) into the trend component and the seasonal component.

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Definitions:

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