Use goodness fit test and the following data test this assumption
Econ 326
Homework #3 (20 Points)
Hudson Marine has been an authorized dealer for C & D marine radios for the past seven years. Suppose the quarterly sales values for the seven years of historical data are as follows:
| Year | Quarter 1 | Quarter 2 | Quarter 3 | Quarter 4 | Total Yearly Sales |
|---|---|---|---|---|---|
| 1 | 6 | 15 | 10 | 4 | 35 |
| 2 | 10 | 18 | 15 | 7 | 50 |
| 3 | 14 | 26 | 23 | 12 | 75 |
| 4 | 19 | 28 | 25 | 18 | 90 |
| 5 | 22 | 34 | 28 | 21 | 105 |
| 6 | 24 | 36 | 30 | 20 | 110 |
| 7 | 28 | 40 | 35 | 27 | 130 |
Use the following dummy variables to develop an estimated regression equation to account for any season and linear trend effects in the data: Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; and Qtr3 = 1 if Quarter 3, 0 otherwise.
Deseasonalize the data and use the deseasonalized time series to identify the trend.
Use the results of part(f)to develop a quarterly forecast for next year based on trend.
The weekly demand for a product is believed to be normally distributed. Use a goodness of fit test and the following data to test this assumption. Use = .10. The sample mean is 24.5 and the sample standard deviation is 3.
| 18 | 20 | 22 | 27 | 22 |
|---|---|---|---|---|
| 25 | 22 | 27 | 25 | 24 |
| 26 | 23 | 20 | 24 | 26 |
| 27 | 25 | 19 | 21 | 25 |
| 26 | 25 | 31 | 29 | 25 |
| 25 | 28 | 26 | 28 | 24 |
A national study by Harris Interactive, Inc., evaluated the top technology companies and their reputations. The following shows how 10 technology companies ranked in reputation and how the companies ranked in percentage of respondents who said they would purchase the company’s stock. A positive rank correlation is anticipated because it seems reasonable to expect that a company with a higher reputation would have the more desirable stock to purchase.
Compute the rank correlation between reputation and stock purchase.
