In: Economics
French Bread Chocolates developed the following quarterly sales forecasting model:
Sales = 8.50 + 0.150 TIME - 2.70 Q1 + 1.20 Q2 + 3.5 Q3
where TIME is time period. (time is zero in the fourth quarter of 2009, time is 1 in the first quarter of 2010 and 2 in the second quarter of 2010 etc.) and Q1, Q2, and Q3 are quarterly dummy variables.
Forecast French Broad Chocolate's sales for each quarter of 2022.
Quarter | Year | Time |
4 | 2009 | 0 |
1 | 2010 | 1 |
2 | 2010 | 2 |
3 | 2010 | 3 |
4 | 2010 | 4 |
1 | 2011 | 5 |
2 | 2011 | 6 |
3 | 2011 | 7 |
4 | 2011 | 8 |
1 | 2012 | 9 |
2 | 2012 | 10 |
3 | 2012 | 11 |
4 | 2012 | 12 |
1 | 2013 | 13 |
2 | 2013 | 14 |
3 | 2013 | 15 |
4 | 2013 | 16 |
1 | 2014 | 17 |
2 | 2014 | 18 |
3 | 2014 | 19 |
4 | 2014 | 20 |
1 | 2015 | 21 |
2 | 2015 | 22 |
3 | 2015 | 23 |
4 | 2015 | 24 |
1 | 2016 | 25 |
2 | 2016 | 26 |
3 | 2016 | 27 |
4 | 2016 | 28 |
1 | 2017 | 29 |
2 | 2017 | 30 |
3 | 2017 | 31 |
4 | 2017 | 32 |
1 | 2018 | 33 |
2 | 2018 | 34 |
3 | 2018 | 35 |
4 | 2018 | 36 |
1 | 2019 | 37 |
2 | 2019 | 38 |
3 | 2019 | 39 |
4 | 2019 | 40 |
1 | 2020 | 41 |
2 | 2020 | 42 |
3 | 2020 | 43 |
4 | 2020 | 44 |
1 | 2021 | 45 |
2 | 2021 | 46 |
3 | 2021 | 47 |
4 | 2021 | 48 |
1 | 2022 | 49 |
2 | 2022 | 50 |
3 | 2022 | 51 |
4 | 2022 | 52 |
Q1, Q2 and Q3 are quartely dummy variables.
When quarter is 1st, then Q1 = 1. Q2=Q3=0
When quarter is 2nd, then Q2 =1, Q1 = Q3 =0
When quarter is 3rd, then Q3=1, Q1=Q2 =0
When Quarter is 4th, then Q1=Q2 = Q3 = 0.
French Board Chocolate's sales for 1st quarter of 2022.
Sales = 8.50 + 0.150 TIME - 2.70 Q1 + 1.20 Q2 + 3.5 Q3
put TIME = 49, Q1 = 1, Q2 = Q3 =0
Sales = 8.50 + 0.150(49) - 2.70(1) + 1.20(0) + 3.5(0)
Sales = 8.50 + 7.35 - 2.70 + 0 + 0
Sales = 13.15
French Board Chocolate's sales for 2nd quarter of 2022.
Sales = 8.50 + 0.150 TIME - 2.70 Q1 + 1.20 Q2 + 3.5 Q3
put TIME = 50, Q2 = 1, Q1 = Q3 =0
Sales = 8.50 + 0.150(50) - 2.70(0) + 1.20(1) + 3.5(0)
Sales = 8.50 + 7.5 - 0 + 1.20 + 0
Sales = 17.2
French Board Chocolate's sales for 3rd quarter of 2022.
Sales = 8.50 + 0.150 TIME - 2.70 Q1 + 1.20 Q2 + 3.5 Q3
put TIME = 51, Q3 = 1, Q2 = Q1 =0
Sales = 8.50 + 0.150(51) - 2.70(0) + 1.20(0) + 3.5(1)
Sales = 8.50 + 7.65 - 0 + 0 + 3.5
Sales = 19.65
French Board Chocolate's sales for 4th quarter of 2022.
Sales = 8.50 + 0.150 TIME - 2.70 Q1 + 1.20 Q2 + 3.5 Q3
put TIME = 52, Q1 = Q2 = Q3 =0
Sales = 8.50 + 0.150(52) - 2.70(0) + 1.20(0) + 3.5(0)
Sales = 8.50 + 7.8 - 0 + 0 + 0
Sales = 16.3