Quarterly revenues (in $1,000,000\'s) for a national restaurant chain for a five
ID: 3404169 • Letter: Q
Question
Quarterly revenues (in $1,000,000's) for a national restaurant chain for a five-year period were as follows:
Quarter
Year 1
Year 2
Year 3
Year 4
Year 5
1
33
42
54
70
85
2
36
40
53
67
82
3
35
42
54
70
87
4
38
47
62
77
99
a.
Use Regression Analysis to solve for the forecast equation that minimizes the sum of squared error.
b.
Forecast the four quarters of year 6.
Please provide detailed explanation? How do I find Predicted y, error and squared error, etc?
Quarter
Year 1
Year 2
Year 3
Year 4
Year 5
1
33
42
54
70
85
2
36
40
53
67
82
3
35
42
54
70
87
4
38
47
62
77
99
Explanation / Answer
Solution :
( a )
Ft = 24.475 + 2.23125 Qtr1t + 2.3125 Qtr2t + 3.65625 Qtr3t + 3.34375t
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( b )
Year 6 : Q1 = 96.925, Q2 = 95.725, Q3 = 97.725, Q4 = 104.725