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

question 71

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 third quarter of 2003?

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Definitions:

Quasi-experimental Research

A research method that seeks to establish a cause-and-effect relationship, without the full control or random assignment found in true experimental designs.

Preexisting Groups

Groups that have been formed before the implementation of a study, not generated by random assignment or manipulation by the researcher.

Random Assignment

A method of assigning individuals or units to different groups in an experiment using randomization to ensure every participant has an equal chance of being placed in any group.

Independent Variable

A variable whose variation does not depend on that of another, often manipulated by the researcher to determine its effect on a dependent variable.