2 A forecaster used the regression equationQ₁=a+b+qD₁+202 + c303and quarterly sales data for 1998/2016/V (t-1.72) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D2.and D3 are dummy variables for quarters I, II, and III.DEPENDENT VARIABLE QTOBSERVATIONS 72VARIABLEINTERCEPTT01R-SQUARE087980203PARAMETERESTIMATE36F-RATIO122 547STANDARDERROR12.54086032610 6818.452512.0300450The estimated QUARTERLY increase in sales isOP-VALUE ON F0.0001T-RATIO P-VALUE2.87000552910.00493600.00050006600174362012.44units.2.51287

Given information: A forecaster used the following regression equation Qt = a + bt +c1D1 +c2D2 +…

A forecaster used the regression equation Q=a+b+q+c202 + c303 and quarterly sales data for 1998/2016/V(-1,72) for an appliance manufacturer to obtain the results shown below. Qis quarterly sales, and D, D and D3 are dummy variables for quarters I, II and III. DEPENDENT VARIABLE QT R-SQUARE 08798 OBSERVATIONS 72 VARIABLE INTERCEPT T 01 02 PARAMETER ESTIMATE 25 12.0 300 450 F-RATIO 122 547 STANDARD ERROR 12.54 0860 326 10 68 P-VALUE ON F 00001 T-RATIO 287 291 244 P-VALUE 00055 00049 0.0005 00066 00174

A forecaster used the regression equation Q=a+b+q+c202 + c303 and quarterly sales data for 1998/2016/V(-1,72) for an appliance manufacturer to obtain the results shown below. Qis quarterly sales, and D, D and D3 are dummy variables for quarters I, II and III. DEPENDENT VARIABLE QT R-SQUARE 08798 OBSERVATIONS 72 VARIABLE INTERCEPT T 01 02 PARAMETER ESTIMATE 25 12.0 300 450 F-RATIO 122 547 STANDARD ERROR 12.54 0860 326 10 68 P-VALUE ON F 00001 T-RATIO 287 291 244 P-VALUE 00055 00049 0.0005 00066 00174

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A forecaster used the regression equation Qt= a + bt+q₁D₁ + C2D2 + c3D3 and quarterly sales data for 2004/-2021/V (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D₂ and D3 are dummy variables for quarters I, II, and III. DEPENDENT VARIABLE: QT R-SQUARE OBSERVATIONS: 64 0.8768 VARIABLE INTERCEPT T D1 D2 D3 F-RATIO P-VALUE ON F 107.982 0.0001 PARAMETER STANDARD ESTIMATE 30.0 1.5 10.0 25.0 40.0 ERROR T-RATIO P-VALUE 2.34 0.0224 2.14 0.0362 3.33 0.0015 3.47 0.0010 2.53 0.0140 12.80 0.70 3.00 7.20 15.80 In any given year, quarterly sales tend to vary as follows:
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