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?

---

Definitions:

Income Security

Financial protection against uncertainties causing loss of income, including programs like pensions, unemployment insurance, and social security.

National Defense

Government or collective actions and strategies intended to protect a country and its citizens from external threats and maintain territorial integrity and sovereignty.

Opportunity Cost

The amount of other products that must be forgone or sacrificed to produce a unit of a product.

Government Deficits

The financial shortfall when a government's expenditures exceed its revenues.