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Use linear regression to compute the forecast for the first quarter of year 4. Include the trend and quarter seasonal effects in the regression model. Provide the profit forecast for year 4, quarter 1. (Round your answer to the nearest whole number)

User Hiwordls
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To predict sales for day 60, substitute 60 into the given regression equation, resulting in a forecast of $250,120. For day 90, a similar substitution gives a forecast of $324,520.

To compute the forecast for the first quarter of year 4 using linear regression, which includes the trend and quarter seasonal effects, we can rely on the provided regression equation ŷ = 101.32 + 2.48x, where x represents the day and ŷ the sales in thousands of dollars. However, the information provided does not include explicit seasonal adjustments; thus, we will use the given trend equation as is for prediction.

For day 60, the predicted sales are calculated by substituting x with 60 in the given equation: ŷ = 101.32 + (2.48 * 60). This results in ŷ = 101.32 + 148.8 = 250.12, or $250,120 when converted from thousands of dollars.

For day 90, using the same approach: ŷ = 101.32 + (2.48 * 90) = 101.32 + 223.2 = 324.52, or $324,520.

User Anicho
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