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:

Extracellular Fluid

The body fluid located outside the cells, which includes interstitial fluid, plasma, and transcellular fluid.

Aldosterone

A hormone produced by the adrenal glands that regulates sodium and potassium levels in the blood, thereby controlling blood pressure and the balance of fluids in the body.

Hypernatremia

Abnormally high plasma concentration of sodium ions.

Oversecretion

The production and release of a substance, such as a hormone or enzyme, in greater amounts than normal or necessary, often leading to various physiological imbalances or conditions.