Exhibit 18

question 4

Short Answer

Exhibit 18.8.Quarterly sales of a department store for the last 7 years are given in the following table. The Excel scatterplot shown above indicates that the quarterly sales have an increasing trend and seasonality.Therefore,the linear regression model,Sales = β₀ + β₁Qtr1 + β₂Qtr2 + β₃Qtr3 + β₄t + ε with three seasonal dummy variables Qtr1,Qtr2 and Qtr3,and the decomposition method are proposed to make sales forecasts.For the regression model,the following Excel partial output is available. Refer to Exhibit 18.8.Using the regression equation for the linear trend model with seasonal dummy variables,what is the sales forecast for the fourth quarter of Year 8?

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Definitions:

Benefits And Costs

The positive outcomes (benefits) and negative outcomes (costs) associated with a particular action or investment, often analyzed in decision-making.

Weak Property Rights

Situations where ownership rights are not fully enforced, leading to potential misuse or underinvestment in resources.

Faster Extraction

The increased rate at which natural resources are removed from the environment, often aiming to meet high demand but potentially leading to sustainability issues.

Long-term Stream

A sustained flow or sequence of activities, processes, or outputs extending over a lengthy period.