Solved

Refer to the Following:
a Forecaster Used the Regression Equation Qt=a+bt+c1D1+c2D2+c3D3Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }

Question 58

Multiple Choice

Refer to the following:
A forecaster used the regression equation
Qt=a+bt+c1D1+c2D2+c3D3Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }
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
D1,D2D _ { 1 } , D _ { 2 } and
D3D _ { 3 } are dummy variables for quarters I, II, and III.
 DEPENDENTVARIAELE:  aT  R-SQUARE  F-RATIO  P-VALUE ON F  OESERVATIONS: 64 0.8768 107.9820.0001 PARAMETER  STANDARD  VARIAELE  ESTIMATE  ERROR  T-RATIO  P-VALUE  INTERCEPT 30.012.82.340.0224 T 1.50.702.140.0362 D1 10.03.03.330.0015 D2 25.07.23.470.0010 D3 40.015.82.530.0140\begin{array} { | l l l l l l } \hline \text { DEPENDENTVARIAELE: } & \text { aT } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ON F } \\\text { OESERVATIONS: } & 64 & \text { 0.8768 } & 107.982 & 0.0001 & \\& & \text { PARAMETER } & \text { STANDARD } & & \\\text { VARIAELE } & & \text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & & 30.0 & 12.8 & 2.34 & 0.0224 \\\text { T } & & 1.5 & 0.70 & 2.14 & 0.0362 \\\text { D1 } & & 10.0 & 3.0 & 3.33 & 0.0015 \\\text { D2 } & & 25.0 & 7.2 & 3.47 & 0.0010 \\\text { D3 } & & 40.0 & 15.8 & 2.53 & 0.0140 \\\hline\end{array}
-The estimated QUARTERLY increase in sales is ______ units, and the estimated ANNUAL increase in sales is ______ units.


A) 1.5; 6
B) 1.4; 4
C) 30; 4
D) 1.5; 40
E) none of the above

Correct Answer:

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