User Account

All Pages

Estimate the following quarterly sales forecasting model

Assignment Help Microeconomics
Reference no: EM13288933

You decide to estimate the following quarterly sales forecasting model for new boat sales in your local county:
Qt = a + bt + cD

The equation is estimated using quarterly data on new boat sales in the county from the 3rd quarter of 2001 to the 4th quarter of 2007 (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:

DEPENDENT VARIABLE:

QT

R-SQUARE

F-RATIO

P-VALUE ON F

OBSERVATIONS:

26

0.5216

12.54

0.0002

PARAMETER

STANDARD

VARIABLE

ESTIMATE

ERROR

T-RATIO

P-VALUE

INTERCEPT

241.3

65.36

3.69

0.0012

T

47.52

13.55

3.51

0.0019

D

34.66

10.33

3.36

0.0027

a. Do the statistical estimates indicate a trend in sales? If so, what is the trend in units per quarter?

Week 4 Problems cont’d
b. Do the statistical estimates indicate a seasonal effect on 2nd quarter sales? If so, what is the seasonal effect in units per quarter?
c. What are the forecasted sales for the 1st quarter of 2008?
d. What are the forecasted sales for the 2nd quarter of 2008?
e. What are the forecasted sales for the 3rd quarter of 2008?
F. What are the forecasted sales for the 4rd quarter of 2008?

Reference no: EM13288933

Questions Cloud

Usually fine just working on my own : As a new supervisor you are looking in on your workers, this time it is Terri, and she isn’t doing too well. Exasperated, she turns to you and says, “I’m sorry, I’m sorry, this is just, I mean why are staring at me? This isn’t how I usually, but, wit..
Properly of particular importance to a group’s leader : Why is failure to delegate thoroughly and properly of particular importance to a group’s leader? Provide several possible reasons.
Design meal plan including food and drink to be consumed : Design a meal plan including food and drink to be consumed from day 4 prior to the event up to the night before the event. Design a meal plan for the follwing Day 4 pre-event, day 3 pre-event, day 2 pre-event, day 1 pre-event, morning of event, durin..
Statement about dietary supplements : Which of the following is a false statement about dietary supplements?
Estimate the following quarterly sales forecasting model : The equation is estimated using quarterly data on new boat sales in the county from the 3rd quarter of 2001 to the 4th quarter of 2007 (t = 1,…,26). The variable D is a dummy variable for the second quarter, which is the “season” for selling new boat..
What did the russian and Qing empires have in common : What did the Russian and Qing Empires have in common, and how did these common features affect the relationship between the two? How and why did the role of the Jesuits as transmitters of European ideas differ in Russia, China, and Japan? How did the..
Business cartels-monopolies that are legal in some countries : Business cartels and monopolies that are legal in some countries may engage in practices that violate U.S. antitrust laws.
Trade laws should you consider when selecting a source : Which U.S. trade laws should you consider when selecting a source? You researched and determined that sources of chocolate milk in France suit your purpose. However, the tariff imposed by the U.S. government on the import of chocolate milk  (17%) fro..
Suggest some alternative channels of distribution : Suggest some alternative channels of distribution for:

Reviews

Write a Review

Microeconomics Questions & Answers

  Shift of the aggregate demand and supply curve

Estimate whether each of the following would cause a shift of the aggregate demand curve, the aggregate supply curve, neither, or both.

  What mechanism could strong economic growth lead to politics

International data show a positive correlation between political stability and economic growth. Through what mechanism could political stability lead to strong economic growth and through what mechanism could strong economic growth lead to politic..

  Concept of profit maximization and total costs

Suppose you are the manager of College computers, a producer of customized computers that meet specifications needed through the local university.

  Calculate the elasticity of demand for alcohol consumption

Explain why it is or is not possible to calculate the elasticity of demand for alcohol consumption for the state situation?

  How do you know that the firm represented in the graph

How do you know that the firm represented in the graph above is a purely competitive firm and to maximize profits, this firm will produce at what output level and explain why this MR=MC position is the profit-maximizing position for any firm.

  Opening a public swimming pool in a residential neighborhood

Imagine a local government is considering opening a public swimming pool in a residential neighborhood

  Determine gdp and per capita gdp

If GDP is rising by 3 percent per year how long will it take GDP to double? Given the same conditions how long will it take Per Capita GDP to double if the population grows at 2 percent?

  Determine what would the costs of each action be

Sometimes market activities (production, buying, and selling) have unintended positive or negative effects outside the market's scope. These are called externalities. As a policy maker concerned with correcting the effects of gases and particulate..

  Describe the level of maximum profit position

cost function for clinic visits in a small inner city clinic Quantity of Visits Total Cost per Week If the price per visit is given to be $25, at what level of visits will the maximum profit position be.

  Why do consumers bear all of the burden of a tax

calculate the formulas for the monopolists' FC, VC, ATC, AVC, and AFC. calculate the profit - maximizing choice of output, price, and profits. Also, how come, in a perfectly competitive market, the burden of a tax is shared in the short run? Also, ..

  Product-specific decisions at the lower level

Even before the metals and manufacturing companies described earlier, U.S. railroads in the nineteenth century were M-form organizations based on geography

  Derive an expression for the (inverse) demand curve

Calculate the price elasticity of demand for Einstein's Bagels and explain what it means. Derive an expression for the (inverse) demand curve for Einsteins's Bagels.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd