3. Rubax, a U.S. manufacturer of athletic shoes, estimates the following linear trend model for shoe sales: Qt = a+bt+c1D1+c2D2+c3D3Where, Qt = sales of athletic shoes in the t-th quartert = 1, 2, . . . . , 28 [2011(I), 2011(II), . . . . , 2017(IV)]D1 = 1 if t is quarter I (winter); 0 otherwiseD2 = 1 if t is quarter II (spring); 0 otherwiseD3 = 1 if t is quarter III (summer); 0 otherwiseThe regression analysis produces the following results: Is there sufficient statistical evidence of an upward trend in shoe sales? explain Do these data indicate a statistically significant seasonal pattern of sales for Rubax shoes? If so, what is the seasonal pattern exhibited by the data? Using the estimated forecast equation, forecast sales of Rubax shoes for 2018(III) and 2019(II). DEPENDENT VARIABLE: QTVARIABLEINTERCEPTTD1D2D3OBSERVATIONS: 28 0.9651PARAMETERESTIMATER-SQUARE F-RATIO1845002100328062507010159.01STANDARDERROR10310340151022201580T-RATIO17.906.182.172.824.44P-VALUE ON F0.0001P-VALUE0.00010.00010.04040.00980.0002a. Is there sufficient statistical evidence of an upward trend in shoe sales?b. Do these data indicate a statistically significant seasonal pattern of sales for Rubaxshoes? If so, what is the seasonal pattern exhibited by the data?c. Using the estimated forecast equation, forecast sales of Rubax shoes for 2018(III)and 2019 (II).d. How might you improve this forecast equation?

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Answered: ubax, a U.S. manufacturer of athletic…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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3. Rubax, a U.S. manufacturer of athletic shoes, estimates the following linear trend model for shoe sales: Qt = a+bt+c1D1+c2D2+c3D3
Where, Qt = sales of athletic shoes in the t-th quarter
t = 1, 2, . . . . , 28 [2011(I), 2011(II), . . . . , 2017(IV)]
D1 = 1 if t is quarter I (winter); 0 otherwise
D2 = 1 if t is quarter II (spring); 0 otherwise
D3 = 1 if t is quarter III (summer); 0 otherwise
The regression analysis produces the following results:

Is there sufficient statistical evidence of an upward trend in shoe sales? explain
Do these data indicate a statistically significant seasonal pattern of sales for Rubax shoes? If so, what is the seasonal pattern exhibited by the data?
Using the estimated forecast equation, forecast sales of Rubax shoes for 2018(III) and 2019(II).

DEPENDENT VARIABLE: QT
VARIABLE
INTERCEPT
T
D1
D2
D3
OBSERVATIONS: 28 0.9651
PARAMETER
ESTIMATE
R-SQUARE F-RATIO
184500
2100
3280
6250
7010
159.01
STANDARD
ERROR
10310
340
1510
2220
1580
T-RATIO
17.90
6.18
2.17
2.82
4.44
P-VALUE ON F
0.0001
P-VALUE
0.0001
0.0001
0.0404
0.0098
0.0002
a. Is there sufficient statistical evidence of an upward trend in shoe sales?
b. Do these data indicate a statistically significant seasonal pattern of sales for Rubax
shoes? If so, what is the seasonal pattern exhibited by the data?
c. Using the estimated forecast equation, forecast sales of Rubax shoes for 2018(III)
and 2019 (II).
d. How might you improve this forecast equation?

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