Consider the following set of quarterly sales data,given in thousands of dollars. The following dummy variable model that incorporates a linear trend and constant seasonal variation was used: y(t)= B₀ + B₁_t + B_Q1(Q1)+ B_Q2(Q2)+ B_Q3(Q3)+ E_t.In this model,there are 3 binary seasonal variables (Q1,Q2,and Q3),where Qi is a binary (0,1)variable defined as:
Qi = 1,if the time series data is associated with quarter i;
Qi = 0,if the time series data is not associated with quarter i.The results associated with this data and model are given in the following Minitab computer output.The regression equation is
Sales = 2442 + 6.2Time − 693Q1 − 1499Q2 + 153Q3 Provide a managerial interpretation of the regression coefficients for the variables Q1 (quarter 1),Q2 (quarter 2),and Q3 (quarter 3).

Question

Consider the following set of quarterly sales data,given in thousands of dollars.

The following dummy variable model that incorporates a linear trend and constant seasonal variation was used: y(t)= B₀ + B₁_t + B_Q1(Q1)+ B_Q2(Q2)+ B_Q3(Q3)+ E_t.In this model,there are 3 binary seasonal variables (Q1,Q2,and Q3),where Qi is a binary (0,1)variable defined as:
Qi = 1,if the time series data is associated with quarter i;
Qi = 0,if the time series data is not associated with quarter i.The results associated with this data and model are given in the following Minitab computer output.The regression equation is
Sales = 2442 + 6.2Time − 693Q1 − 1499Q2 + 153Q3

Provide a managerial interpretation of the regression coefficients for the variables Q1 (quarter 1),Q2 (quarter 2),and Q3 (quarter 3).

Quizplus · Accepted Answer

The Answer of Consider the following set of quarterly sales data,given in thousands of dollars. The following dummy variable model that incorporates a linear trend and constant seasonal variation was used: y(t)= B₀ + B₁_t + B_Q1(Q1)+ B_Q2(Q2)+ B_Q3(Q3)+ E_t.In this model,there are 3 binary seasonal variables (Q1,Q2,and Q3),where Qi is a binary (0,1)variable defined as: Qi = 1,if the time series data is associated with quarter i; Qi = 0,if the time series data is not associated with quarter i.The results associated with this data and model are given in the following Minitab computer output.The regression equation is Sales = 2442 + 6.2Time − 693Q1 − 1499Q2 + 153Q3 Provide a managerial interpretation of the regression coefficients for the variables Q1 (quarter 1),Q2 (quarter 2),and Q3 (quarter 3).

Consider the Following Set of Quarterly Sales Data,given in Thousands