Instruction 14-5
a Local Store Developed a Multiplicative Time-Series Model $\hat { Y }$

question 203

Short Answer

Instruction 14-5
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 2005 to 2009.The following is the resulting regression equation:
log 10 $\hat { Y }$ = 6.102 + 0.012 X - 0.129 Q₁ - 0.054 Q₂ + 0.098 Q₃
Where
$\hat { Y }$ is the estimated number of contracts in a quarter
X is the coded quarterly value with X = 0 in the first quarter of 2005.
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 Instruction 14-5,using the regression equation,what is the forecast for the revenues in the first quarter of 2005?

Recognize the role and impact of financial regulations, such as the Truth in Savings law.

Comprehend the advantages of credit unions over other financial institutions.

Calculate the yield on savings accounts and understand the factors that influence it.

Identify strategies for saving and borrowing in different interest rate environments.

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Definitions:

Unamortized Patent

The portion of a patent's purchase cost that has not yet been expensed in the company's financial statements over the patent's useful life.

Investment Account Balance

The total value of all the securities and cash in an investment account at any given time, reflecting purchases, sales, gains, and losses.

Equity Method

This approach adjusts the value of an investment based on the proportional changes in the investee's net assets, reflecting the investor's ownership interest.