Use the estimated regression equation y_t = 448 + 12t + 18 Qtr1 - 26 Qtr2 + 3 Qtr3 to make a forecast for period 13. The regression model has three quarterly binaries (0 or 1). The model was fitted to 12 periods of quarterly data, starting with the first quarter. A)588 B)476 C)622 D)No forecast is possible without knowing R².

Question

Quizplus · Accepted Answer

Since the equation includes binary variables for quarters, we need to know the values of Qtr1, Qtr2, and Qtr3 for period 13 in order to make a forecast. However, the question does not provide this information or any information about the values of previous binary variables. Therefore, we cannot use this equation to make a forecast without additional information.

Use the Estimated Regression Equation Yt = 448 + 12t

Use the Estimated Regression Equation Y_t = 448 + 12t