Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
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Textbook Question
Chapter 8, Problem 23P
Consider the following time series data:
- a. Construct a time series plot. What type of pattern exists in the data?
- b. Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data: Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2. 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise.
- c. Compute the quarterly forecasts for next year based on the model you developed in part (b).
- d. Use a multiple regression model to develop an equation to account for trend and seasonal effects in the data. Use the dummy variables you developed in part (b) to capture seasonal effects and create a variable t such that t = 1 for quarter 1 in year 1, t = 2 for quarter 2 in year 1, … t = 12 for quarter 4 in year 3.
- e. Compute the quarterly forecasts for next year based on the model you developed in part (d).
- f. Is the model you developed in part (b) or the model you developed in part (d) more effective? Justify your answer.
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Students have asked these similar questions
One hundred students were surveyed about their preference between dogs and cats. The following two-way table displays data for the sample of students who responded to the survey.
Preference
Male
Female
TOTAL
Prefers dogs
\[36\]
\[20\]
\[56\]
Prefers cats
\[10\]
\[26\]
\[36\]
No preference
\[2\]
\[6\]
\[8\]
TOTAL
\[48\]
\[52\]
\[100\]
problem 1
Find the probability that a randomly selected student prefers dogs.Enter your answer as a fraction or decimal.
\[P\left(\text{prefers dogs}\right)=\]
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Preference
Male
Female
TOTAL
Prefers dogs
\[\blueD{36}\]
\[\blueD{20}\]
\[\blueE{56}\]
Prefers cats
\[10\]
\[26\]
\[36\]
No preference
\[2\]
\[6\]
\[8\]
TOTAL
\[48\]
\[52\]
\[100\]
There were \[\blueE{56}\] students in the sample who preferred dogs out of \[100\] total students.
Business discuss
You have been hired as an intern to run analyses on the data and report the results back to Sarah; the five questions that Sarah needs you to address are given below.
Does there appear to be a positive or negative relationship between price and screen size? Use a scatter plot to examine the relationship.
Determine and interpret the correlation coefficient between the two variables. In your interpretation, discuss the direction of the relationship (positive, negative, or zero relationship). Also discuss the strength of the relationship.
Estimate the relationship between screen size and price using a simple linear regression model and interpret the estimated coefficients. (In your interpretation, tell the dollar amount by which price will change for each unit of increase in screen size).
Include the manufacturer dummy variable (Samsung=1, 0 otherwise) and estimate the relationship between screen size, price and manufacturer dummy as a multiple linear regression model.
Interpret the…
Chapter 8 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 8 - Consider the following time series data:
Using...Ch. 8 - Refer to the time series data in Problem 1. Using...Ch. 8 - Problems 1 and 2 used different forecasting...Ch. 8 - Consider the following time series data:
Compute...Ch. 8 - Consider the following time series...Ch. 8 - Consider the following time series...Ch. 8 - Refer to the gasoline sales time series data in...Ch. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10P
Ch. 8 - For the Hawkins Company, the monthly percentages...Ch. 8 - Corporate triple A bond interest rates for 12...Ch. 8 - The values of Alabama building contracts (in...Ch. 8 - The following time series shows the sales of a...Ch. 8 - Prob. 15PCh. 8 - The following table reports the percentage of...Ch. 8 - Consider the following time series: a. Construct a...Ch. 8 - Consider the following time series:
Construct a...Ch. 8 - Because of high tuition costs at state and private...Ch. 8 - The Seneca Children’s Fund (SCF) is a local...Ch. 8 - The president of a small manufacturing firm is...Ch. 8 - Consider the following time series: a. Construct a...Ch. 8 - Consider the following time series...Ch. 8 - The quarterly sales data (number of copies sold)...Ch. 8 - Prob. 25PCh. 8 - South Shore Construction builds permanent docks...Ch. 8 - Hogs & Dawgs is an ice cream parlor on the border...Ch. 8 - Donna Nickles manages a gasoline station on the...Ch. 8 - The Vintage Restaurant, on Captiva Island near...
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