The numbers of copies of a college textbook sold quarterly over the past four years are: Since the time series has trend and seasonal pattern, to forecast the quarterly sales of the textbook, the following regression equation was found:
yt= 2120 - 620 Qtr1t - 1320Qtr2t+290Qtr3t + 24t
where Qtr1t , Qtr2t and Qtr3t are dummy variables corresponding to Quarters 1, 2 and 3, and t = time period.
The sales forecast for Quarter 4 of the next year is:
a. 2600
b. 1232
c. 2006
d. 1874
The sales forecast for Quarter 1 of the next year is
a. 1908
b. 1432
c. 2206
d. 1874
Answers: 3
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