Consider the Following Set of Quarterly Sales Data,given in Thousands

question 96

Essay

Consider the following set of quarterly sales data,given in thousands of dollars. The following dummy variable model that incorporates a linear trend and constant seasonal variation was used: y(t)= B₀ + B_1t + B_Q1(Q1)+ B_Q2(Q2)+ B_Q3(Q3)+ E_t.In this model,there are 3 binary seasonal variables (Q1,Q2,and Q3),where Qi is a binary (0,1)variable defined as:
Qi = 1,if the time series data is associated with quarter i;
Qi = 0,if the time series data is not associated with quarter i.The results associated with this data and model are given in the following Minitab computer output.The regression equation is
Sales = 2442 + 6.2Time − 693Q1 − 1499Q2 + 153Q3 Provide a managerial interpretation of the regression coefficients for the variables Q1 (quarter 1),Q2 (quarter 2),and Q3 (quarter 3).

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Definitions:

Primary Data

Data collected firsthand for a specific research purpose, involving direct interaction with the study subjects through surveys, interviews, or experiments.

Time-Consuming

Requiring a significant amount of time to complete, often more than what is considered desirable or efficient.

Costly

Involving great expense; something that requires a high amount of money or resources.

Specific Firm

Refers to a particular company or business entity mentioned or focused upon in a discussion.