Ask Question, Ask an Expert


Ask Microeconomics Expert

Savings-Mart sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and summer quarters and lower sales during fall and winter quarters. The company developed the following quarterly sales forecasting model using data from 2005Q1 to 2009Q4 i.e. n=20 quarters:

Y t = 8.25 + 0.125t - 2.75D1t + 0.25D2t + 3.50D3t R^2 = 0.789
(2.5) (3.1) (1.8) (5.3)

where the numbers in parenthesis are t-values,

Y t= predicted quarterly sales ($million) in quarter t
t= time period
D1t= dummy variable =1 for 1st quarter, 0 otherwise
D2t= dummy variable = 1 for 2nd quarter, 0 otherwise
D3t= dummy variable = 1 for 3rd quarter, 0 otherwise

a. describe what R2 = 0.789 means

b. Forecast Savings-Mart's sales for each of the quarters in 2010

C. Which variables of the model are statistically significant? Use t-test for a=.05.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M946332

Have any Question? 

Related Questions in Microeconomics

Assignment lasa the costs of productionjoseph farms inc is

Assignment: LASA: The Costs of Production Joseph Farms, Inc. is a small firm in the agricultural industry. They have asked you to help them complete the limited data they have gathered in an effort to enable effective de ...

Answer all of the following questions in microsoft word

Answer all of the following questions in Microsoft Word file with complete questions and answers and attach it. 1. Consider the markets for e-books, e-readers (e.g. kindle), and physical copies of books. For each of the ...

Microeconomics assignmentshort and long runlets assume that

Microeconomics Assignment Short and Long Run Let's assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between th ...

Problem set onefall 20161consider the attached article from

PROBLEM SET ONE FALL 2016 1. Consider the attached article from the Wall Street Journal. It is a great application of the net-benefit cal ...

Brainy brian eco discussiondiscussion topic is the lost

Brainy Brian ECO discussion Discussion topic is The Lost Decade: Needs to be 150-250 words and one or two citations. No cover page is needed Aggregate expenditure is the total amount of spending in the economy that deter ...

Assignmentwrite an assessment in which you address the

Assignment Write an assessment in which you address the following problems/questions: 1. Evaluate the leverage implications of debt financing choices. You should include in your discussion the decomposition of ROE model. ...

What is the difference between a cost and an expense when

What is the difference between a cost and an expense? When does a cost become an expense? Do all costs become expenses? Explain.

Discussionapplications and best practices please respond to

Discussion "Applications and Best Practices" Please respond to the following: • Propose two applications of the knowledge that you have learned in this course to your current or a future position. Provide a rationale for ...

Success and failurethink about the causes of success and

Success and Failure Think about the causes of success and failure for particular movements. What causes some to become widely appealing and have major impacts on change? What causes others (regardless of the validity of ...

1 mary has two possible career paths she can become either

1. Mary has two possible career paths. She can become either a biologist or a concert pianist. Mary lives for 2 periods. In the first period she gets the appropriate education for her career. In the second period, she wo ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate