Posted by **Miss Cheong** on Saturday, November 5, 2011 at 1:16pm.

A linear trend equation for sale of the form Qt = a + bt was estimated for the period 1993-2007 (i.e. t=1993, 1994, 2007) The results of the regression are as follow:

Dependent variable : Qt, R-Square, F-ratio, P-Value on F

Observations : 15, 0.6602, 25.262, 0.0002

Variable, Parameter Estimate, Standard Error, T-ratio, P-value

Intercept 73.71460, 34.08, 2.16, 0.0498

t 3.7621, 0.749, 5.02, 0.0002

a) Evaluate the statistical significance of the estimated coefficients (use 5 percent for significance level) Does this equation indicate a significant trend? (6m)

b) Using this equation, forecast sales in 2008 and 2009. (4M)

c) Comment on the precision of these two forecasts. (4m)

Thank you

## Answer this Question

## Related Questions

- Economics - The table below shows annual demand (in 100,000 units per year) for ...
- economics - year nominal GDP GDP deflator (billions) (based year 1992) 1993 725 ...
- Economics - Economyst, please help Rubax__ a U.S. manufacturer of athletic shoes...
- Statistics - Using a sample of recent university graduates, you estimate a ...
- statistics - The following data on the number of iron workers in the United ...
- statistics - The following data on the number of iron workers in the United ...
- math - A sum of money,X was deposited in a saving account at 10 percent ...
- math - A sum of money,X was deposited in a saving account at 10 percent ...
- Economyst please help - Economyst, please help Rubax__ a U.S. manufacturer of ...
- math - AIDS Cases From 1993 to 2003 the cumulative number N of AIDS cases in ...