refer to the following:
The manufacturer of Beanie Baby dolls used quarterly price data for 2002I - 2010IV (t = 1, ..., 36) and the regression equation

to forecast doll prices in the year 2011. P t is the quarterly price of dolls, and D1 t , D2 t and D3 t are dummy variables for quarters I, II, and III, respectively.

-Using the estimated time-series regression, predicted price in the 2nd quarter of 2011 is
A) $48.40
B) $54.40
C) $40.40
D) $51.40
E) none of the above

Question

refer to the following:
The manufacturer of Beanie Baby dolls used quarterly price data for 2002I - 2010IV (t = 1, ..., 36) and the regression equation

to forecast doll prices in the year 2011. P t is the quarterly price of dolls, and D1 t , D2 t and D3 t are dummy variables for quarters I, II, and III, respectively.
 
-Using the estimated time-series regression, predicted price in the 2nd quarter of 2011 is
A) $48.40 
B) $54.40 
C) $40.40 
D) $51.40 
E) none of the above

Quizplus · Accepted Answer

The estimated time-series regression predicted price in the 2nd quarter of 2011 is $48.40.

Refer to the Following