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In: Statistics and Probability

QUESTION 13 Questions 13-15 The information of the numbers of copies of a college textbook sold...

QUESTION 13

  1. Questions 13-15

    The information of the numbers of copies of a college textbook sold quarterly over the past four years was used.  Since the time series has trend and seasonal pattern, to forecast the quarterly sales of the textbook, the following regression equation was found: Y't = 2100 - 640Qtr1-1250Qtr2 + 312Qtr3 + 27t , where Qtr1t, Qtr2t, and Qtr3t are dummy variables corresponding to Quarters 1, 2 and 3, and t = time period.

    Q13. The sales forecast for Quarter 3 of the next year is _____

    a.

    2815
    b.

    1243
    c.

    2100
    d.

    2923
    e.

    None of the above

1.5 points   

QUESTION 14

  1. Q14.  The estimated growth in the textbook sales is ______

    a.

    6.75 copies
    b.

    30 copies
    c.

    27 copies
    d.

    2100 copies
    e.

    None of the above

1.5 points   

QUESTION 15

  1. Q15. The sales in Quarter 1 of the next year are predicted to be _____

    a.

    1004 copies lower than that in Qtr3 of the next year.
    b.

    1004 copies higher than that in Qtr3 of the next year.
    c.

    1570 copies lower than that in Qtr2 of the next year.
    d.

    286 copies higher than that in Qtr2 of the next year.
    e.

    None of the above

Solutions

Expert Solution

Q13. The sales forecast for Quarter 3 of the next year is _____

Y't = 2100 - 640Qtr1-1250Qtr2 + 312Qtr3 + 27t

t=15 Qtr1=0,Qtr2=0,Qtr3=1

Y't = 2100 - 640*0-1250*0 + 312*1 + 27*15

=2100 - 0-0+ 312 + 27*15

=2412+27*15

=2817

forecast for Quarter 3 of the next year is 2817 this option not there but closest option is 2815therefore

Answer

a.2815

Q14.  The estimated growth in the textbook sales is _27 because it is coiefficient of t

Y't = 2100 - 640Qtr1-1250Qtr2 + 312Qtr3 + 27t

Answer

c. 27 copies

======================================================

Q15. The sales in Quarter 1 of the next year are predicted to be _____

The sales forecast for Quarter 3 of the next year is 2815

Now The sales forecast for Quarter 1 of the next year is

Y't = 2100 - 640Qtr1-1250Qtr2 + 312Qtr3 + 27t

t=13 Qtr1=1,Qtr2=0,Qtr3=0

Y't = 2100 - 640*1-1250*0 + 312*0 + 27*13

=1811

sales forecast for Quarter 1 - sales forecast for Quarter 3= -1004

=2815-1811=1004

correct option is

a. 1004 copies lower than that in Qtr3 of the next year.

===============================================================


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orchestra answered 2 years ago
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