SCENARIO 16-12 A Local Store Developed a Multiplicative Time-Series Model to Forecast

question 115

Short Answer

SCENARIO 16-12
A local store developed a multiplicative time-series model to forecast its revenues in future quarters,using quarterly data on its revenues during the 5-year period from 2009 to 2013.The following is the resulting regression equation:
log₁₀ Y^ˆ = 6.102 + 0.012 X - 0.129 Q₁ - 0.054 Q₂ + 0.098 Q₃
where
Y^ˆ is the estimated number of contracts in a quarter.
X is the coded quarterly value with X = 0 in the first quarter of 2008.
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.
Time-Series Forecasting 16-31
-Referring to Scenario 16-12,using the regression equation,what is the forecast for the revenues in the third quarter of 2014?

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Carbohydrates

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Steroids

A class of organic compounds with a characteristic molecular structure containing four rings of carbon atoms.

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Organic compounds that are fatty acids or their derivatives and are insoluble in water but soluble in organic solvents. They serve as energy sources and structural components in cells.

Adipose Tissue

A type of body tissue containing stored fat, serving as an energy reserve, insulation, and cushioning for organs.