A business analyst is hired by a local real estate firm to forecast how condo sales on a quarterly basis over the next several years. The firm provides the analyst with three years worth of quarterly condo sales data. Noticing that the data exhibits increasing trend and a seasonal pattern, the analyst chooses to create a multiple regression model for generating the forecasts: y = 116 + 18 Qtr1 + (-86) Qtr2 + (-75) Qtr3 + 11 t In the equation above, Qtr1, Qtr2, and Qtr3 are dummy variables corresponding to the first, second, and third quarters of the calendar year and t is the time period number, starting with t = 1 for the first quarter of year 1. Using the model described above, what is the forecast for the number of condo sales the firm can expect during the second quarter of year 5? (Hint: the second quarter of year 5 would be time period t = 18.) Your Answer: Answer

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Equations and inequalities describe the relationship between two mathematical expressions.

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A linear function can just be a constant, or it can be the constant multiplied with the variable like x or y. If the variables are of the form, x2, x1/2 or y2 it is not linear. The exponent over the variables should always be 1.