Based on quarterly data collected over the last four years,the following regression equation was found to forecast the quarterly demand for the number of new copies of an economics textbook: = 3,305 - 665Qtr1 - 1,335Qtr2 + 305Qtr3,where Qtr1,Qtr2,and Qtr3 are dummy variables corresponding to Quarters 1,2,and 3. The demand forecast for Quarter 2 of the next year is _______.

Question

Based on quarterly data collected over the last four years,the following regression equation was found to forecast the quarterly demand for the number of new copies of an economics textbook:  = 3,305 - 665Qtr1 - 1,335Qtr2 + 305Qtr3,where Qtr1,Qtr2,and Qtr3 are dummy variables corresponding to Quarters 1,2,and 3. The demand forecast for Quarter 2 of the next year is _______.

Quizplus · Accepted Answer

To forecast the demand for Quarter 2 of the next year, we need to set Qtr1 = 0, Qtr2 = 1, and Qtr3 = 0 in the regression equation.
Plugging in these values, we get:
11eab0ce_3058_aa01_a083_a533cc95e51e_TB4266_11 = 3,305 - 665(0) - 1,335(1) + 305(0) = 1,970
Therefore, the demand forecast for Quarter 2 of the next year is 1,970.

Based on Quarterly Data Collected Over the Last Four Years,the