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

question 67

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 fourth quarter of 2004?

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Definitions:

Operant Conditioning

A learning process where the strength of a behavior is modified by reinforcement or punishment.

Observational Conditioning

A learning process where an individual acquires behaviors by observing and imitating others.

State-Dependent Learning

The theory that information learned in a specific state of mind (e.g., emotional, physiological) is more easily recalled when in that same state.

Conditioned Stimulus

An initially neutral signal that, once linked with an unconditioned stimulus, ultimately elicits a conditioned response.