Using the quarterly dummy variable approach, forecast sales for January through December of the fourth year. For instance, you would have three dummy variables - quarter 1, quarter 2, and quarter 3 and quarter 4 is a baseline quarter. Quarter 1=1 if sales occurs in January, February, March otherwise. Quarter 1=0 quarter 2=1 if sales occurs in April may or June, otherwise, quarter 2=0. Quarter 3=1 if sales occurs in July, August, or September otherwise Quarter 3=0.Assume that January sales for the fourth year turn out to be $295,000. what was your forecast error? if this error is large, karen may be puzzled about the difference between your forecast and the actual sales value. what can you do to resolve her uncertainty in the forecasting procedure? The vintage restaurant, on Captiva Island near Fort Myers, Florida, is owned andoperated by Karen Payne. The restaurant just completed its third year ofoperation. During that time, Karen sought to establish a reputation for the restaurant as ahigh-quality dining establishment that specializes in fresh seafood. Through the efforts ofKaren and her staff, her restaurant has become one of the best and fastest-growingrestaurants on the island. To better plan for future growth of the restaurant, Karen needsto develop a system that will enable her to forecast food and beverage sales by monthfor up to one year in advance. Table 1 shows the value of food and beverage sales($1000s) for the first three years of operationTable 1- Food and Beverage Sales for the Vintage Restaurant ($1,000s)Year 1242235March232April178May184June140July145August152September 110October130November152December206MonthJanuaryFebruaryYear 2263238247193193149157161122130167230Year 3282255265205210160166174126148173235

From the given information, Quarter 1=1 if sales occurs in January, February, March otherwise.…

Answered: Using the quarterly dummy variable…

College Algebra (MindTap Course List)

12th Edition

ISBN:9781305652231

Author:R. David Gustafson, Jeff Hughes

Publisher:R. David Gustafson, Jeff Hughes

Chapter6: Linear Systems

Section6.8: Linear Programming

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Using the quarterly dummy variable approach, forecast sales for January through December of the fourth year. For instance, you would have three dummy variables - quarter 1, quarter 2, and quarter 3 and quarter 4 is a baseline quarter. Quarter 1=1 if sales occurs in January, February, March otherwise. Quarter 1=0 quarter 2=1 if sales occurs in April may or June, otherwise, quarter 2=0. Quarter 3=1 if sales occurs in July, August, or September otherwise Quarter 3=0. Assume that January sales for the fourth year turn out to be $295,000. what was your forecast error? if this error is large, karen may be puzzled about the difference between your forecast and the actual sales value. what can you do to resolve her uncertainty in the forecasting procedure?