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Textbook sales. The quarterly sales data (number of copies sold) for a college textbook over the past 3 years are as follows: Quarter Yr 1
Textbook sales. The quarterly sales data (number of copies sold) for a college textbook over the past 3 years are as follows: |
Quarter | Yr 1 | Yr 2 | Yr 3 |
1 | 1690 | 1800 | 1850 |
2 | 940 | 900 | 1100 |
3 | 2625 | 2900 | 2930 |
4 | 2500 | 2360 | 2615 |
d. Let t= 1 refer to the observation in quarter 1 of year 1; t=2 refer to the observation in quarter 2 of year 1;.; and t=12 refer to observation in quarter 4 of year 3. | ||
Using dummy variables defined in part (b) and t, develop an equation to account for seasonal effects and any linear trend in the time series. |
e. Based upon the seasonal effects in the data and linear trend, compute the quarterly forecasts for the next year. |
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