Table 4. Results of estimated coefficients (Model 2) Coefficientsa Unstandardize
ID: 1154860 • Letter: T
Question
Table 4. Results of estimated coefficients (Model 2) Coefficientsa Unstandardized Coefficients Std. Error (Constant) Trend Q1 198.786 -.554 5.204 18.550 25.704 4.550 294 4.672 4.663 4.672 Q3 a. Dependent Variable: Pas:S 14. The multiple regression model is specified as: Ft- a0 + a1 *Trend + a2 *Q1 + a3* Q2 + a4* Q3, where Ft-total air passenger-miles (billions); Q1, Q2, & Q3 are dummies for quarteir 1, quarter 2, and quarter 3, respectively. You collected data from Quarter 1 of 2006 to Quarter 4 of 2014 (36 observations) andd obtained the coefficient results (Table 4). Forecast air passenger-miles for the 1st quarter of 2015.* (decimal places: 3)Explanation / Answer
By substituting the regression results in the equation form we get,
Forecast = 198.76-0.554*trend-5.204*Q1+18.55*Q2+25.704*Q3
As we have to forecast for Q1 of 2015, the trend would take value of 37 and Q1 = 1, Q2=0, Q3 =0
Forecast = 198.76-0.554*37-5.204*1+18.55*0+25.704*0
Forecast for Q1-2015 = 173.058 air passenger-miles
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