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Quarterly Sales of a Department Store for the Last Seven

Question 46

Essay

Quarterly sales of a department store for the last seven years are given in the following table. Quarterly sales of a department store for the last seven years are given in the following table. The scatterplot shows that the quarterly sales have an increasing trend and seasonality. A linear regression model given by, Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε, where t is the time period (t = 1, ..., 28) and Qtr1, Qtr2, and Qtr3 are quarter dummies, is estimated and then used to make forecasts. For the regression model, the following partial output is available. Using the decomposition method: A) Compute the adjusted seasonal indices for the four quarters. B) Find the linear trend equation for the seasonally adjusted quarterly sales. C) Make the sales forecasts for the first and fourth quarter of Year 8. Quarterly sales of a department store for the last seven years are given in the following table. The scatterplot shows that the quarterly sales have an increasing trend and seasonality. A linear regression model given by, Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε, where t is the time period (t = 1, ..., 28) and Qtr1, Qtr2, and Qtr3 are quarter dummies, is estimated and then used to make forecasts. For the regression model, the following partial output is available. Using the decomposition method: A) Compute the adjusted seasonal indices for the four quarters. B) Find the linear trend equation for the seasonally adjusted quarterly sales. C) Make the sales forecasts for the first and fourth quarter of Year 8. The scatterplot shows that the quarterly sales have an increasing trend and seasonality. A linear regression model given by, Sales = β0 + β1Qtr1 + β2Qtr2 + β3Qtr3 + β4t + ε, where t is the time period (t = 1, ..., 28) and Qtr1, Qtr2, and Qtr3 are quarter dummies, is estimated and then used to make forecasts. For the regression model, the following partial output is available. Quarterly sales of a department store for the last seven years are given in the following table. The scatterplot shows that the quarterly sales have an increasing trend and seasonality. A linear regression model given by, Sales = β<sub>0</sub> + β<sub>1</sub>Qtr1 + β<sub>2</sub>Qtr2 + β<sub>3</sub>Qtr3 + β<sub>4</sub>t + ε, where t is the time period (t = 1, ..., 28) and Qtr1, Qtr2, and Qtr3 are quarter dummies, is estimated and then used to make forecasts. For the regression model, the following partial output is available. Using the decomposition method: A) Compute the adjusted seasonal indices for the four quarters. B) Find the linear trend equation for the seasonally adjusted quarterly sales. C) Make the sales forecasts for the first and fourth quarter of Year 8. Using the decomposition method:
A) Compute the adjusted seasonal indices for the four quarters.
B) Find the linear trend equation for the seasonally adjusted quarterly sales.
C) Make the sales forecasts for the first and fourth quarter of Year 8.

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a. 0.9322, 1.0066, 0...

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