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

question 163

Multiple Choice

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: where is the estimated number of contracts in a quarter. X is the coded quarterly value with X = 0 in the first quarter of 2008. is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise. is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Scenario 16-12, to obtain a forecast for the third quarter of 2014 using the model, which of the following sets of values should be used in the regression equation?

• A)X = 22,
• B)X = 22,
• C)X = 23,
• D)X = 23,

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