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TABLE 16-12 A Local Store Developed a Multiplicative Time-Series Model to Forecast

Question 130

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TABLE 16-12
A local store developed a multiplicative time-series model to forecast its revenues in future quarters,using quarterly data on its revenues during the 5-year period from 2008 to 2012.The following is the resulting regression equation:
log10
TABLE 16-12 A local store developed a multiplicative time-series model to forecast its revenues in future quarters,using quarterly data on its revenues during the 5-year period from 2008 to 2012.The following is the resulting regression equation: log<sub>10</sub> <sub> </sub> = 6.102 + 0.012 X - 0.129 Q<sub>1</sub> - 0.054 Q<sub>2</sub> + 0.098 Q<sub>3</sub> where is the estimated number of contracts in a quarter X is the coded quarterly value with X = 0 in the first quarter of 2008 Q<sub>1</sub> is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise Q<sub>2</sub> is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise -Referring to Table 16-12,to obtain a forecast for the third quarter of 2013 using the model,which of the following sets of values should be used in the regression equation? A) X = 22,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 0 B) X = 22,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 1 C) X = 23,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 0 D) X = 23,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 1 = 6.102 + 0.012 X - 0.129 Q1 - 0.054 Q2 + 0.098 Q3
where TABLE 16-12 A local store developed a multiplicative time-series model to forecast its revenues in future quarters,using quarterly data on its revenues during the 5-year period from 2008 to 2012.The following is the resulting regression equation: log<sub>10</sub> <sub> </sub> = 6.102 + 0.012 X - 0.129 Q<sub>1</sub> - 0.054 Q<sub>2</sub> + 0.098 Q<sub>3</sub> where is the estimated number of contracts in a quarter X is the coded quarterly value with X = 0 in the first quarter of 2008 Q<sub>1</sub> is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise Q<sub>2</sub> is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise -Referring to Table 16-12,to obtain a forecast for the third quarter of 2013 using the model,which of the following sets of values should be used in the regression equation? A) X = 22,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 0 B) X = 22,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 1 C) X = 23,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 0 D) X = 23,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 1 is the estimated number of contracts in a quarter
X is the coded quarterly value with X = 0 in the first quarter of 2008
Q1 is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise
Q2 is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise TABLE 16-12 A local store developed a multiplicative time-series model to forecast its revenues in future quarters,using quarterly data on its revenues during the 5-year period from 2008 to 2012.The following is the resulting regression equation: log<sub>10</sub> <sub> </sub> = 6.102 + 0.012 X - 0.129 Q<sub>1</sub> - 0.054 Q<sub>2</sub> + 0.098 Q<sub>3</sub> where is the estimated number of contracts in a quarter X is the coded quarterly value with X = 0 in the first quarter of 2008 Q<sub>1</sub> is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise Q<sub>2</sub> is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise -Referring to Table 16-12,to obtain a forecast for the third quarter of 2013 using the model,which of the following sets of values should be used in the regression equation? A) X = 22,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 0 B) X = 22,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 1 C) X = 23,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 0 D) X = 23,Q<sub>1</sub> = 0,Q<sub>2</sub> = 0,Q<sub>3</sub> = 1 is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise
-Referring to Table 16-12,to obtain a forecast for the third quarter of 2013 using the model,which of the following sets of values should be used in the regression equation?


A) X = 22,Q1 = 0,Q2 = 0,Q3 = 0
B) X = 22,Q1 = 0,Q2 = 0,Q3 = 1
C) X = 23,Q1 = 0,Q2 = 0,Q3 = 0
D) X = 23,Q1 = 0,Q2 = 0,Q3 = 1

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