Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I'm having trouble with part c Exercise 17.32 Algo (Seasonality and Trend) Question 8 of 11 . Hint(s) Check My Work South Shore Construction builds
I'm having trouble with part c
Exercise 17.32 Algo (Seasonality and Trend) Question 8 of 11 . Hint(s) Check My Work South Shore Construction builds permanent docks and seawalls along the southern shore of Long Island, New York. Although the firm has been in business only five years. revenue has increased from $300,000 in the first year of operation to $1,078,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars. Quarter Year 1 Year 2 Year ] Year 4 Year S 19 34 102 182 103 133 165 212 276 172 241 318 389 436 24 43 83 184 a. Construct a time series plot.\fTime write pist What type of pattern widets in the data? There appears to be a seasonal pattern in the date and perhaps a upward Brees trend y. b. Use the following during variables to develop an estimated regression equation to account for any seasonal effects in the data: Quel = 1 if Quarter 1. 0 otherwises Qtra = 1 if Quarter 2. 0 otherwise, Qirl = 1 if Quarter 3. 9 otherwise. Round your arawers (in thousands of dollar] to whole number Revenue - 65 + 12.6 @ Quel + 109.8 @ Qur2 + 243.2 @ Qur3 Based only on the seasonal effects in the data, compute satimates of quarterly sales for year S. Round your answers to whole number. Quarter 1 forsenat $ Quarter 2 forecast # 178 thousands Quarter 3 forecast s 3118 theusands Quarter 4 forecast $ c. Let Period = 1 to refer to the observation in quarter 1 of year 1: Period - 2 to refer to the observation in quarter 2 of year Is .. . and Period - 20 to refer to the beervation in quarter 4 of year 3. Using the dummy variables defined in part (b) and Period, develop an estimated repression equation to account for personal effects and any linear trend in the time series. Round your answers (in thousands of dollars) to whole number. Enter negative value as negative numbers The repression equation is Revenue =-75.25 + 11.937 0 Carl + 48.42 0 Qua + 133.67 @ Qur3 + 255.13 Period Based upon the seasonal effects in the data and linear brand. compute satimabes of quarterly sales for year S. Round your arivers to whole number. Quarter 1 forecant $ thousands Quarter 2 forecast $ thousands Quarter 3 forecant # thousands Quarter 4 forecast $ (X the hands Hide Feedback Partially Correct Hint(s) Check My WorkStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started