Please answer both questions 1 AND 2( quarterly sales for next year Hudson Marin

Question

Please answer both questions 1 AND 2( quarterly sales for next year

Hudson Marine has been an authorized dealer for C&D; marine radios for the past seven years. Suppose the quarterly sales values for the seven years of historical data follows. Use the following dummy variables to develop an estimated regression equation to account for both season and linear trend effects in the data: Qtr=1 If Quarter 1, 0 otherwise: Qtr2= if Quarter 2, 0 otherwise: and Qtr3=1 If Quarter 3, 0 otherwise. Compute the quarterly forecasts for next year.

Explanation / Answer

Answer:

1). Sales = 0.0357+0.9710*period+4.9129*Q1+14.5134*Q2+9.1138*Q3

2).

Predicted sales for Quarter1 ,

Sales = 0.0357+0.9710*29+4.9129*1+14.5134*0+9.1138*0

=33.1076

Predicted sales for Quarter2 ,

Sales = 0.0357+0.9710*30+4.9129*0+14.5134*1+9.1138*0

=43.6791

Predicted sales for Quarter3 ,

Sales = 0.0357+0.9710*31+4.9129*0+14.5134*0+9.1138*1

=39.2505

Predicted sales for Quarter4 ,

Sales = 0.0357+0.9710*32+4.9129*0+14.5134*0+9.1138*0

=31.1077

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