Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and summer quarters and lower sales during the fall and winter quarters. The company developed the following quarterly sales forecasting model: where t = 6.00+ 0.600t - 2.75Dit +0.25D2t + 3.5D3t Ỹ₁ = predicted sales (in millions of dollars) in quarter t 6.00 quarterly sales (in millions of dollars) when t = 0 t = time period (quarter) where the fourth quarter of 2012 = 0, first quarter of 2013 = 1, second qua Dit 1 for first-quarter observations; 0 otherwise D2 = 1 for second-quarter observations; 0 otherwise D3t 1 for third-quarter observations; 0 otherwise Forecast Savings-Mart's sales of patio and lawn furniture for each quarter of 2020. Quarter 2020 First Quarter 2020 Second Quarter 2020 Third Quarter 2020 Fourth Quarter Sales Forecast (Millions of dollars)

Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and summer quarters and lower sales during the fall and winter quarters. The company developed the following quarterly sales forecasting model: where t = 6.00+ 0.600t - 2.75Dit +0.25D2t + 3.5D3t Ỹ₁ = predicted sales (in millions of dollars) in quarter t 6.00 quarterly sales (in millions of dollars) when t = 0 t = time period (quarter) where the fourth quarter of 2012 = 0, first quarter of 2013 = 1, second qua Dit 1 for first-quarter observations; 0 otherwise D2 = 1 for second-quarter observations; 0 otherwise D3t 1 for third-quarter observations; 0 otherwise Forecast Savings-Mart's sales of patio and lawn furniture for each quarter of 2020. Quarter 2020 First Quarter 2020 Second Quarter 2020 Third Quarter 2020 Fourth Quarter Sales Forecast (Millions of dollars)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

9. Exercise 5.9
Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and
summer quarters and lower sales during the fall and winter quarters. The company developed the following quarterly sales forecasting model:
Y₁ = 6.00 +0.600t - 2.75Dit +0.25D2t + 3.5D3t
where
Ỹ₁ = predicted sales (in millions of dollars) in quarter t
6.00 = quarterly sales (in millions of dollars) when t = 0
t = time period (quarter) where the fourth quarter of 2012 = 0, first quarter of 2013 = 1, second qua
Dit = 1 for first-quarter observations; 0 otherwise
D2t 1 for second-quarter observations; 0 otherwise
D3t = 1 for third-quarter observations; 0 otherwise
Forecast Savings-Mart's sales of patio and lawn furniture for each quarter of 2020.
Quarter
2020 First Quarter
2020 Second Quarter
2020 Third Quarter
2020 Fourth Quarter
Sales Forecast
(Millions of dollars)
elekea

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Step 3: Sales Forecast for 2nd quarter:

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Step 4: Sales Forecast for 3rd quarter:

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