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Quarterly Regression Problem

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A retail jewelry store has generated the following regression model for forecasting its total quarterly sales (in thousands of dollars):

^yt=52.6 + 2.63t - 21.04Q1 - 10.52 Q2 + 5.26Q3

where Q1, Q 2, and Q3 are indicator variables of the form

Q1=

{ 1 if the data associated with Quarter i
{ 0 otherwise
This model is developed using a data set that starts in Quarter 1 of 2002 (i.e., the first time period t=1is associated with Quarter 1of 2002 ). Use this model to forecast the store's total sales (in thousands of dollars) in Quarter 2 of 2010.

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Computations done by hand for you. No references.

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Using this model, Q2 of 2010 is t = (2010-2002)*4 + 1 = 33
And the ...

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