A construction company has been in business for four yearsbuilding permanent docks and seawalls along the Eastern coast. Although thay have been is business only four years they have seen revenue increase from $444,000 to $1,084,000 over the four years. The following table shows quarterly sales revenue in thousands of dollars. Quarter Year 1 Year 2 Year 3 Year 4 1 37 75 92 176 136 155 202 282 3 245 326 384 445 4 26 48 82 181 A. Construct a time series plot. What type of pattern exists in this data ? B. Develop an estimated regression (forecasting) equation which account for the observed seasonality (if any) and any trends (year over year) in the sales revenue data (use the dummy variable approach). C. Develop a forecast for Year 5 sales revenue by quarter.
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 9 images