The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a seasonal regression model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is provided in the following table.
-Refer to Exhibit 11.12. What are predicted sales for the first quarter of year 4?
A)1155 $\le$ predicted sales

Question

The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a seasonal regression model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is provided in the following table.  
-Refer to Exhibit 11.12. What are predicted sales for the first quarter of year 4?
A)1155 $\le$ predicted sales < 1160 
B)1065 $\le$ predicted sales < 1070 
C)1410$\le$ predicted sales < 1415 
D)1635 $\le$ predicted sales < 1640

Quizplus · Accepted Answer

According to the regression output table, the coefficient for Quarter 1 (Q1) is 345. Therefore, the predicted sales for the first quarter of year 4 would be: 
1410 = 1070 + 345 + (0.2 x 1400) - (0.1 x 1100) 
where 1070 is the intercept, 1400 and 1100 are the average values for advertising and competition respectively.

The Following Questions Use the Data Below ≤\le≤ Predicted Sales < 1160 B)1065

The Following Questions Use the Data Below $\le$ Predicted Sales < 1160
B)1065