Use the following information to answer questions 18-20 . A forecaster used the
ID: 1192260 • Letter: U
Question
Use the following information to answer questions 18-20.
A forecaster used the regression equation
and quarterly sales data for 1996I–2013IV (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
F-RATIO
P-VALUE ON F
OBSERVATIONS:
64
0.8768
107.982
0.0001
VARIABLE
PARAMETER
ESTIMATE
STANDARD
ERROR
T-RATIO
P-VALUE
INTERCEPT
30.0
12.8
2.34
0.0224
T
1.5
0.70
2.14
0.0362
D1
10.0
3.0
3.33
0.0015
D2
25.0
7.2
3.47
0.0010
D3
40.0
15.8
2.53
0.0140
18) Using a 5 percent significance level, these estimation results indicate that
a. sales in the first quarter are significantly greater than sales in any other quarter.
b. sales in the second quarter are significantly greater than sales in any other quarter.
c. sales in the third quarter are significantly greater than sales in any other quarter.
d. sales in the fourth quarter are significantly greater than sales in any other quarter.
19) In any given year, quarterly sales tend to vary as follows:
a. QI > QII > QIII > QIV
b. QI > QII > QIV > QIII
c. QII > QIII > QIV > QI
d. QIII > QII > QI > QIV
e. QIII > QIV > QII > QI
20) Using the estimation results given above, the predicted level of sales in 2014I is _______ units.
a. 137.5
b. 139
c. 133.5
d. 132
e. none of the above
DEPENDENT VARIABLE:
QT
R-SQUARE
F-RATIO
P-VALUE ON F
OBSERVATIONS:
64
0.8768
107.982
0.0001
VARIABLE
PARAMETER
ESTIMATE
STANDARD
ERROR
T-RATIO
P-VALUE
INTERCEPT
30.0
12.8
2.34
0.0224
T
1.5
0.70
2.14
0.0362
D1
10.0
3.0
3.33
0.0015
D2
25.0
7.2
3.47
0.0010
D3
40.0
15.8
2.53
0.0140
Explanation / Answer
18: B
19: E
20: E