Deck 7: Demand Estimation and Forecasting

Question 1

refer to the following:
The estimated demand for a good is

where Q is the quantity demanded of the good, P is the price of the good, M is income, and is the price of related good R.

-The coefficient on P

A) does not have the expected sign.
B) is negative as expected.
C) should have the same sign as the coefficient on .
D) should not be greater than one (in absolute value).
E) both b and d

Answer 1

is negative as expected.

Question 2

refer to the following:
The estimated demand for a good is

where Q is the quantity demanded of the good, P is the price of the good, M is income, and is the price of related good R.

-The good is

A) an inferior good since the coefficient on

Is positive.
B) a normal good since the coefficient on

Is positive.
C) an inferior good since the coefficient on M is greater than one.
D) a normal good since the coefficient on M is positive.
E) none of the above

Answer 2

a normal good since the coefficient on M is positive.

Question 3

refer to the following:
The estimated demand for a good is

where Q is the quantity demanded of the good, P is the price of the good, M is income, and is the price of related good R.

-This good and the related good R are

A) complements since the coefficient on M is positive.
B) substitutes since the coefficient on M is positive.
C) complements since the coefficient on

Is positive.
D) substitutes since the coefficient on

Is positive.

Answer 3

substitutes since the coefficient on

Is positive.

Question 4

refer to the following:
The estimated demand for a good is

where Q is the quantity demanded of the good, P is the price of the good, M is income, and is the price of related good R.

-The coefficient on P

A) violates the law of demand.
B) is negative as dictated by the law of demand.
C) should not be greater than one (in absolute value).
D) should have the same sign as the coefficient on


E) both c and d

Question 5

refer to the following:
The estimated demand for a good is

where Q is the quantity demanded of the good, P is the price of the good, M is income, and is the price of related good R.

-The good is

A) an inferior good since the coefficient on

Is negative.
B) a normal good since the coefficient on

Is negative.
C) a normal good since the coefficient on M is greater than one (in absolute value).
D) an inferior good since the coefficient on M is negative.
E) none of the above

Question 6

refer to the following:
The estimated demand for a good is

where Q is the quantity demanded of the good, P is the price of the good, M is income, and is the price of related good R.

-This good and good R are

A) complements since the coefficient on M is negative.
B) substitutes since the coefficient on M is negative.
C) complements since the coefficient on

Is negative.
D) substitutes since the coefficient on

Is negative.
E) none of the above

Question 7

If demand is estimated using the empirical specification

, then an equivalent expression for demand is

A)


B)


C)


D)


E) none of the above

Question 8

For a linear demand function,

, the income elasticity is

A) c.
B) c(M/Q).
C) c(Q/M).
D) -c.
E) -c(Q/ )

Question 9

For a nonlinear demand function of the form ,

, the estimated cross-price elasticity of demand is

A) d.
B) -d.
C) d(

/P))
D) -d(P/

))
E) d(Q/ ).

Question 10

refer to the following:
Build-Right Concrete Products produces specialty cement used in construction of highways. Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form:

where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and = the price of asphalt per yard. The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation. The estimation results are presented below:
?

-The estimated demand for cement is

A) elastic because = 4.0.
B) elastic because = 2.0.
C) elastic because = 1.5.
D) inelastic because = 0.32.
E) inelastic because = 0.8.

Question 11

refer to the following:
Build-Right Concrete Products produces specialty cement used in construction of highways. Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form:

where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and = the price of asphalt per yard. The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation. The estimation results are presented below:
?

-At the 1 percent level of significance, the number of degrees of freedom for a t-test is _____, and the critical value of the t-statistic is ________. Only parameter estimate(s) ________ is (are) NOT statistically significant at the 1 percent level of significance.

A) 30; 2.457;

B) 30; 2.750;
C) 34; 2.042;

D) 34; 2.042,

And

Question 12

refer to the following:
Build-Right Concrete Products produces specialty cement used in construction of highways. Build-Right is a price-setting firm and estimates the demand for its cement by the State Highway Department using a demand function in the nonlinear form:

where Q = yards of cement demanded monthly, P = the price of Build-Right's cement per yard, M = state tax revenues per capita, and = the price of asphalt per yard. The manager at Build-Right transforms the nonlinear relation into a linear relation for estimation. The estimation results are presented below:
?

-If the price of asphalt (

) decreases 20%, the estimated quantity of cement demanded will:

A) increase 12%
B) increase 6%
C) increase 1.2%
D) decrease 12%.
E) decrease 1.2%.

Question 13

The estimated demand for a good is

, where

= units of the good, P = price of the good, M = income, and

= price of related good Z. All parameter estimates are statistically significant. Which of the following statements are correct?

A) X is a normal good.
B) X is an inferior good.
C) X and Z are substitutes.
D) X and Z are complements.
E) both b and c

Question 14

refer to the following:
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:

?
where Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and P_R is the price of a related product. The results of the estimation are presented below:


-At the 1% level of significance, the critical value of the F-statistic is equal to __________.

A) 0.7984
B) 4.57
C) 36.14
D) 2.763
E) -3.50

Question 15

refer to the following:
The following linear demand specification is estimated for Conlan Enterprises, a price-setting firm:

?
where Q is the quantity demanded of the product Conlan Enterprises sells, P is the price of that product, M is income, and P_R is the price of a related product. The results of the estimation are presented below:


-At the 1% level of significance, which estimates are statistically significant?

A) All are statistically significant
B) All but are statistically significant
C) Only , are statistically significant
D) Only is statistically significant
E) All but and are statistically significant

Question 16

assume that the income is $10,000, the price of the related good is $40, and Conlan chooses to set the price of this product at $30.

-At the prices and income given above, what is the price elasticity of demand?

A) -0.43
B) -0.86
C) -1.00
D) -1.43
E) -2.40

Question 17

assume that the income is $10,000, the price of the related good is $40, and Conlan chooses to set the price of this product at $30.

-At the prices and income given above, what is the income elasticity?

A) -1.62
B) -0.87
C) 0.21
D) 0.31
E) 1.50

Question 18

suppose income remains at $10,000 but the price of the related good increases to $60 and Conlan decides to raise the price of its product to $50.

-What is the new own price elasticity of demand?

A) -0.24
B) -0.43
C) -0.87
D) -1.00
E) -1.26

Question 19

refer to the following:
A consulting firm estimates the following quarterly sales forecasting model:
?
The equation is estimated using quarterly data from 2000I-2010III (t = 1,..., 43). The variable D is a dummy variable for the second quarter where:
D = 1 in the second quarter, and 0 otherwise.
The results of the estimation are:
?

-What is the estimated intercept of the trend line in the second quarter?

A) 22.50
B) 24.50
C) 24.36
D) 2.00
E) none of the above

Question 20

refer to the following:
A consulting firm estimates the following quarterly sales forecasting model:
?
The equation is estimated using quarterly data from 2000I-2010III (t = 1,..., 43). The variable D is a dummy variable for the second quarter where:
D = 1 in the second quarter, and 0 otherwise.
The results of the estimation are:
?

-What is the estimated intercept of the trend line in the third quarter?

A) 22.50
B) 24.50
C) 24.36
D) 2.00
E) none of the above

Question 21

refer to the following:
A consulting firm estimates the following quarterly sales forecasting model:
?
The equation is estimated using quarterly data from 2000I-2010III (t = 1,..., 43). The variable D is a dummy variable for the second quarter where:
D = 1 in the second quarter, and 0 otherwise.
The results of the estimation are:
?

-Using the estimated trend line, what is the predicted level of sales in 2010IV ?

A) 110.06
B) 106.20
C) 104.34
D) 102.2
E) none of the above

Question 22

refer to the following:
A consulting firm estimates the following quarterly sales forecasting model:
?
The equation is estimated using quarterly data from 2000I-2010III (t = 1,..., 43). The variable D is a dummy variable for the second quarter where:
D = 1 in the second quarter, and 0 otherwise.
The results of the estimation are:
?

-Using the estimated trend line, what is the predicted level of sales in 2011I ?

A) 110.06
B) 106.20
C) 104.34
D) 102.2
E) none of the above

Question 23

refer to the following:
A forecaster used the regression equation

and quarterly sales data for 1993I-2010IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D₁, D₂and D₃are dummy variables for quarters I, II, and III.


-At the 5 percent level of significance, is there a statistically significant trend in sales?

A) Yes, because 0.0362 < 0.05.
B) No, because 0.0362 > 0.01.
C) Yes, because 0.700 > 0.05.
D) Yes, because 2.14 >0.05.
E) both c and d

Question 24

refer to the following:
A forecaster used the regression equation

and quarterly sales data for 1993I-2010IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D₁, D₂and D₃are dummy variables for quarters I, II, and III.


-What is the estimated intercept of the trend line in the second quarter?

A) 25
B) 26.6
C) 55
D) 65
None of the above

Question 25

refer to the following:
A forecaster used the regression equation

and quarterly sales data for 1993I-2010IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D₁, D₂and D₃are dummy variables for quarters I, II, and III.


-Using the estimation results given above, the predicted level of sales in 2011I is _______ units.

A) 137.5
B) 139
C) 133.5
D) 132
E) none of the above

Question 26

refer to the following:
A forecaster used the regression equation

and quarterly sales data for 1993I-2010IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D₁, D₂and D₃are dummy variables for quarters I, II, and III.


-Using the estimation results given above, the predicted level of sales in 2011II is _______ units.

A) 127.5
B) 137.5
C) 154
D) 155.5
E) none of the above

Question 27

refer to the following:
A forecaster used the regression equation

and quarterly sales data for 1993I-2010IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D₁, D₂and D₃are dummy variables for quarters I, II, and III.


-Using the estimation results given above, the predicted level of sales in 2011III is _______ units.

A) 141.5
B) 156
C) 172
D) 173.5
E) none of the above

Question 28

refer to the following:
A forecaster used the regression equation

and quarterly sales data for 1993I-2010IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D₁, D₂and D₃are dummy variables for quarters I, II, and III.


-Using the estimation results given above, the predicted level of sales in 2011IV is _______ units.

A) 125
B) 127.50
C) 132
D) 133.5
E) none of the above

Question 29

refer to the following:
The manufacturer of Beanie Baby dolls used quarterly price data for 2002I - 2010IV (t = 1, ..., 36) and the regression equation


to forecast doll prices in the year 2011. P_t is the quarterly price of dolls, and D1_t , D2_t and D3_t are dummy variables for quarters I, II, and III, respectively.


-At the 2 percent level of statistical significance, is there a statistically significant trend in the price of dolls?

A) Yes, because 0.0022 < 0.02.
B) No, because 0.0022 > 0.02.
C) Yes, because 0.800 > 0.02.
D) Yes, because 0.240 > 0.02.
E) Yes, because 3.33 > 0.02.

Question 30

refer to the following:
The manufacturer of Beanie Baby dolls used quarterly price data for 2002I - 2010IV (t = 1, ..., 36) and the regression equation


to forecast doll prices in the year 2011. P_t is the quarterly price of dolls, and D1_t , D2_t and D3_t are dummy variables for quarters I, II, and III, respectively.


-The estimated QUARTERLY increase in price is ______, and the estimated ANNUAL increase in price is ______ .

A) $1.50; $6.00
B) $1.40; $4.00
C) $0.60; $2.40
D) $0.80; $3.20
E) none of the above

Question 31

refer to the following:
The manufacturer of Beanie Baby dolls used quarterly price data for 2002I - 2010IV (t = 1, ..., 36) and the regression equation


to forecast doll prices in the year 2011. P_t is the quarterly price of dolls, and D1_t , D2_t and D3_t are dummy variables for quarters I, II, and III, respectively.


-What is the estimated intercept of the trend line in the 4th quarter?

A) 22.8
B) 16
C) 18
D) 20
E)None of the above

Question 32

refer to the following:
The manufacturer of Beanie Baby dolls used quarterly price data for 2002I - 2010IV (t = 1, ..., 36) and the regression equation


to forecast doll prices in the year 2011. P_t is the quarterly price of dolls, and D1_t , D2_t and D3_t are dummy variables for quarters I, II, and III, respectively.


-Using the estimated time-series regression, predicted price in the 1st quarter of 2011 is

A) $53.60.
B) $45.60.
C) $56.00.
D) $37.60.
E) none of the above

Question 33

refer to the following:
The manufacturer of Beanie Baby dolls used quarterly price data for 2002I - 2010IV (t = 1, ..., 36) and the regression equation


to forecast doll prices in the year 2011. P_t is the quarterly price of dolls, and D1_t , D2_t and D3_t are dummy variables for quarters I, II, and III, respectively.


-Using the estimated time-series regression, predicted price in the 2nd quarter of 2011 is

A) $48.40
B) $54.40
C) $40.40
D) $51.40
E) none of the above

Question 34

The estimated market demand for good X is where is the estimated number of units of good X demanded, P is the price of the good, M is income, and is the price of related good G. (All parameter estimates are statistically significant at the 1 percent level of significance.)
-Good X is a(n) ______________ good and goods X and G are _________________.

Question 35

The estimated market demand for good X is where is the estimated number of units of good X demanded, P is the price of the good, M is income, and is the price of related good G. (All parameter estimates are statistically significant at the 1 percent level of significance.)
-At P = $12, M = $30,000, and p_G = $50, the predicted quantity demanded is _________ units of good X.

Question 36

The estimated market demand for good X is where is the estimated number of units of good X demanded, P is the price of the good, M is income, and is the price of related good G. (All parameter estimates are statistically significant at the 1 percent level of significance.)
-At the values in part b, calculate estimates of the following elasticities:
(1) Price elasticity: ‪ = _________.
(2) Cross-price elasticity:‪ = __________.
(3) Income elasticity:‪ = __________.

Question 37

The empirical demand function is estimated in log-linear form as where is the estimated number of units of good X demanded, P is the price of X, M is income, and is the price of related good Y. (All parameters estimates are significantly different from zero at the 5 percent level.)
-Good X is a(n) ______________ good and goods X and Y are ____________________.

Question 38

The empirical demand function is estimated in log-linear form as where is the estimated number of units of good X demanded, P is the price of X, M is income, and is the price of related good Y. (All parameters estimates are significantly different from zero at the 5 percent level.)
-Express the empirical demand function in the alternative (non-logarithmic) form:
=_________________________.

Question 39

The empirical demand function is estimated in log-linear form as where is the estimated number of units of good X demanded, P is the price of X, M is income, and is the price of related good Y. (All parameters estimates are significantly different from zero at the 5 percent level.)
-At P = $3.55, M = $25,035, and P_V = $5.07, the predicted quantity demanded is _________ units of good X.

Question 40

The empirical demand function is estimated in log-linear form as where is the estimated number of units of good X demanded, P is the price of X, M is income, and is the price of related good Y. (All parameters estimates are significantly different from zero at the 5 percent level.)
-Calculate the following elasticities:
(1) Price elasticity: = __________.
(2) Cross-price elasticity: = __________.
(3) Income elasticity: = __________.

Question 41

The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
The estimation results are presented below:
?

-The estimated demand equation can be expressed in logarithms as ln = ___________.

Question 42

The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
The estimation results are presented below:
‪
-Good X is a(n) ______________ good and goods X and R are _________________.

Question 43

The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
The estimation results are presented below:
‪
-Find estimates for the following elasticities:
(1) Price elasticity: __________.
(2) Cross-price elasticity: __________.
(3) Income elasticity: __________.

Question 44

The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
The estimation results are presented below:
‪
-A 22 percent decrease in household income, holding all other things constant, will cause quantity demanded to _____________ (increase, decrease) by _____ percent.

Question 45

The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
The estimation results are presented below:
‪
-All else constant, a 22 percent increase in price causes quantity demanded _____________ (increase, decrease) by _____ percent.

Question 46

The following log-linear demand curve for a price-setting firm is estimated using the ordinary least-squares method:
The estimation results are presented below:
‪
-An 8 percent decrease in the price of R, holding all other variables constant, causes quantity demanded to _____________ (increase, decrease) by _____ percent.

Question 47

Border Snacks Inc. produces and sells picante sauce, nacho chips, and queso dip. The company's marketing department estimated a linear demand function for Border's picante sauce: where is the number of jars of picante sauce sold per month, is the price of picante sauce, is the price of a bag of nacho chips, is the price of a jar of queso dip, and M is consumer income. In the market served by Border Snacks, income is currently $16,000. The following regression results were obtained using 22 monthly observations:
‪
-The estimates indicate that picante sauce and nacho chips are _______. The estimates indicate that picante sauce and queso dip are _________. The estimates indicate that picante sauce is a(n) _________ good.

Question 48

Border Snacks Inc. produces and sells picante sauce, nacho chips, and queso dip. The company's marketing department estimated a linear demand function for Border's picante sauce: where is the number of jars of picante sauce sold per month, is the price of picante sauce, is the price of a bag of nacho chips, is the price of a jar of queso dip, and M is consumer income. In the market served by Border Snacks, income is currently $16,000. The following regression results were obtained using 22 monthly observations:
‪
-Explain carefully and completely the meaning of the p-value for the parameter estimate on the price of nacho chips.

Question 49

Border Snacks Inc. produces and sells picante sauce, nacho chips, and queso dip. The company's marketing department estimated a linear demand function for Border's picante sauce: where is the number of jars of picante sauce sold per month, is the price of picante sauce, is the price of a bag of nacho chips, is the price of a jar of queso dip, and M is consumer income. In the market served by Border Snacks, income is currently $16,000. The following regression results were obtained using 22 monthly observations:
‪
-If Border Snacks Inc. sets the price of picante at $6 per jar, the price of its nacho chips at $3 per bag, and the price of its queso dip at $8 per jar, sales of picante sauce is forecast to be ________________ jars per month. Show your work below:

Question 50

Border Snacks Inc. produces and sells picante sauce, nacho chips, and queso dip. The company's marketing department estimated a linear demand function for Border's picante sauce: where is the number of jars of picante sauce sold per month, is the price of picante sauce, is the price of a bag of nacho chips, is the price of a jar of queso dip, and M is consumer income. In the market served by Border Snacks, income is currently $16,000. The following regression results were obtained using 22 monthly observations:
‪
-At the prices set in part c above, the price elasticity of demand for picante sauce is calculated to be ____________________, and demand is ______________ at this point. Show your work below:

Question 51

Border Snacks Inc. produces and sells picante sauce, nacho chips, and queso dip. The company's marketing department estimated a linear demand function for Border's picante sauce: where is the number of jars of picante sauce sold per month, is the price of picante sauce, is the price of a bag of nacho chips, is the price of a jar of queso dip, and M is consumer income. In the market served by Border Snacks, income is currently $16,000. The following regression results were obtained using 22 monthly observations:
‪
-If the price of nacho chips falls by 2.4%, Border Snacks can expect sales of its picante sauce to ___________________ (increase, decrease) by _______%. (HINT: Begin by computing the appropriate estimated cross-price elasticity.) Show your work below:

Question 52

A linear trend equation for sales of the form was estimated using annual sales data for the period 2000 - 2007 (i.e., t = 2000, 2001, ..., 2007). The results of the regression are as follows:

-At the 10 percent level of significance, the critical value of the t-statistic is _______. The parameter estimate of a ________ (is, is not) statistically significant. The parameter estimate of b ________ (is, is not) statistically significant.

Question 53

A linear trend equation for sales of the form was estimated using annual sales data for the period 2000 - 2007 (i.e., t = 2000, 2001, ..., 2007). The results of the regression are as follows:

-The statistical estimates indicate a(n) ___________ (upward, downward) trend in sales of _________ units per year.

Question 54

A linear trend equation for sales of the form was estimated using annual sales data for the period 2000 - 2007 (i.e., t = 2000, 2001, ..., 2007). The results of the regression are as follows:

-In the year 2008, sales are forecasted to be ___________ units.

Question 55

A linear trend equation for sales of the form was estimated using annual sales data for the period 2000 - 2007 (i.e., t = 2000, 2001, ..., 2007). The results of the regression are as follows:

-In the year 2009, sales are forecasted to be ___________ units.

Question 56

You decide to estimate the following quarterly sales forecasting model for new boat sales in your local county:
The equation is estimated using quarterly data on new boat sales in the county from 2001III -2007IV ( t = 1,..., 26). The variable D is a dummy variable for the second quarter, which is the "season" for selling new boats: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are:


-At the 1 percent level of significance, the critical value of the t-statistic is _______. The parameter estimate of a ________ (is, is not) statistically significant. The parameter estimate of b ________ (is, is not) statistically significant. The parameter estimate of c ________ (is, is not) statistically significant.

Question 57

You decide to estimate the following quarterly sales forecasting model for new boat sales in your local county:
The equation is estimated using quarterly data on new boat sales in the county from 2001III -2007IV ( t = 1,..., 26). The variable D is a dummy variable for the second quarter, which is the "season" for selling new boats: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are:


-The statistical estimates indicate a(n) ___________ (upward, downward) trend in sales of _________ units per year.

Question 58

You decide to estimate the following quarterly sales forecasting model for new boat sales in your local county:
The equation is estimated using quarterly data on new boat sales in the county from 2001III -2007IV ( t = 1,..., 26). The variable D is a dummy variable for the second quarter, which is the "season" for selling new boats: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are:


-The statistical estimates indicate a(n) ___________ (positive, negative) seasonal effect on 2^nd quarter sales of _________ units in the 2^nd quarter of each year.

Question 59

You decide to estimate the following quarterly sales forecasting model for new boat sales in your local county:
The equation is estimated using quarterly data on new boat sales in the county from 2001III -2007IV ( t = 1,..., 26). The variable D is a dummy variable for the second quarter, which is the "season" for selling new boats: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are:


-The forecasted sales for the 1^st quarter of 2008 are ___________ units.

Question 60

You decide to estimate the following quarterly sales forecasting model for new boat sales in your local county:
The equation is estimated using quarterly data on new boat sales in the county from 2001III -2007IV ( t = 1,..., 26). The variable D is a dummy variable for the second quarter, which is the "season" for selling new boats: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are:


-The forecasted sales for the 2^nd quarter of 2008 are ___________ units.

Question 61

You decide to estimate the following quarterly sales forecasting model for new boat sales in your local county:
The equation is estimated using quarterly data on new boat sales in the county from 2001III -2007IV ( t = 1,..., 26). The variable D is a dummy variable for the second quarter, which is the "season" for selling new boats: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are:


-The forecasted sales for the 3^rd quarter of 2008 are ___________ units.

Question 62

You decide to estimate the following quarterly sales forecasting model for new boat sales in your local county:
The equation is estimated using quarterly data on new boat sales in the county from 2001III -2007IV ( t = 1,..., 26). The variable D is a dummy variable for the second quarter, which is the "season" for selling new boats: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are:


-The forecasted sales for the 4^th quarter of 2008 are ___________ units.

Question 63

A forecaster used the following regression equation and quarterly sales data during 1999II - 2007IV (t = 1, ..., 35) for an appliance manufacturer to obtain the estimation results shown below. Q is quarterly sales, and ,and are seasonal dummy variables for quarters I, II, and III.


-At the 2 percent level of significance, the critical value of the t-statistic is _______.
The parameter estimate of a ________ (is, is not) statistically significant.
The parameter estimate of b ________ (is, is not) statistically significant.
The parameter estimate of C₁ ________ (is, is not) statistically significant.
The parameter estimate of C₂ ________ (is, is not) statistically significant.
The parameter estimate of C₃ ________ (is, is not) statistically significant.

Question 64

A forecaster used the following regression equation and quarterly sales data during 1999II - 2007IV (t = 1, ..., 35) for an appliance manufacturer to obtain the estimation results shown below. Q is quarterly sales, and ,and are seasonal dummy variables for quarters I, II, and III.


-The statistical estimates indicate a(n) ___________ (upward, downward) trend in sales of _________ units per quarter year.

Question 65

A forecaster used the following regression equation and quarterly sales data during 1999II - 2007IV (t = 1, ..., 35) for an appliance manufacturer to obtain the estimation results shown below. Q is quarterly sales, and ,and are seasonal dummy variables for quarters I, II, and III.


-The estimated intercepts for each of the four quarters are:
Intercept for quarter 1 is __________.
Intercept for quarter 2 is __________.
Intercept for quarter 3 is __________.
Intercept for quarter 4 is __________.

Question 66

A forecaster used the following regression equation and quarterly sales data during 1999II - 2007IV (t = 1, ..., 35) for an appliance manufacturer to obtain the estimation results shown below. Q is quarterly sales, and ,and are seasonal dummy variables for quarters I, II, and III.


-The forecasted sales for the 1^st quarter of 2008 are ___________ units.
The forecasted sales for the 2^nd quarter of 2008 are ___________ units.
The forecasted sales for the 3^rd quarter of 2008 are ___________ units.
The forecasted sales for the 4^th quarter of 2008 are ___________ units.