SCENARIO 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 2009 to 2013.The following is the resulting regression equation: 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.
is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise.
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 Scenario 16-12, to obtain the fitted value for the first quarter of 2013 using the model, which of the following sets of values should be used in the regression equation?
A) X = 16,
B) X = 16,
C) X = 17,
D) X = 17,
Correct Answer:
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