(b) Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. (Round your numerical values to three decimal places.) x, -1 if quarter 1, 0 otherwise; x, - 1 if quarter 2, 0 otherwise; x, = 1 if quarter 3, 0 otherwise
(b) Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. (Round your numerical values to three decimal places.) x, -1 if quarter 1, 0 otherwise; x, - 1 if quarter 2, 0 otherwise; x, = 1 if quarter 3, 0 otherwise
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter7: Integration
Section7.EA: Extended Application Estimating Depletion Dates For Minerals
Problem 1EA
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Please answer b, c, d and e
Transcribed Image Text:Consider the following time series data.
Quarter
Year 1
Year 2
Year 3
1
3
2
1.
2
3.
2.
4
4
8.
6.
6.
Transcribed Image Text:(b) Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. (Round your numerical values to three
decimal places.)
x, - 1 if quarter 1, 0 otherwise; x, = 1 if quarter 2, 0 otherwise; x, = 1 if quarter 3, 0 otherwise
(c) Compute the quarterly forecasts for the next year based on the model you developed in part (b). (Round your answers to two decimal places.)
quarter 1 forecast
quarter 2 forecast
quarter 3 forecast
quarter 4 forecast
(d) Use a multiple regression model to develop an equation to account for trend and seasonal effects in the data. Use the dummy variables you developed in part (b) to
capture seasonal effects and create a variable t such that t 1 for quarter 1 in year 1, t = 2 for quarter 2 in year 1, ... t = 12 for quarter 4 in year 3. (Round your
numerical values to three decimal places.)
(e) Compute the quarterly forecasts for the next year based on the model you developed in part (d). (Round your answers to two decimal places.)
quarter 1 forecast
quarter 2 forecast
quarter 3 forecast
quarter 4 forecast
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