A Forecaster Used the Regression Equation and Quarterly Sales

question 2

Multiple Choice

A forecaster used the regression equation and quarterly sales data for 1996I-2013IV t = 1,...,64) for an appliance manufacturer to obtain the results shown below.Q is quarterly sales,and and are dummy variables for quarters I,II,and III. What is the estimated intercept of the trend line in the fourth quarter?

• A)0
• B)40
• C)55
• D)70
• E)none of the above

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Definitions:

Financial Outcomes

The results of financial decisions or activities, often reflected in financial statements, profitability, or liquidity measures.

Machine Breakdowns

Unexpected failures or stoppages of machinery, leading to delays in production or operations.

Marketing Effort

Activities and strategies undertaken by a company to promote its products or services and attract customers, such as advertising and promotions.

Strategy Map

A visual representation of an organization's strategies, showing the cause-effect relationship between strategic objectives.