Instruction 14-6
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the four-year period from 2005 to 2009. The following is the resulting regression equation:
Where
is the coded quarterly value with in the first quarter of 2005 .
is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise.
is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.
is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Instruction 14-6,the best interpretation of the coefficient of Q3 (0.098) in the regression equation is:
A) The revenues in the third quarter of a year is approximately 25.31% higher than the average over all four quarters.
B) The revenues in the third quarter of a year is approximately 25.31% higher than it would be during the fourth quarter.
C) The revenues in the third quarter of a year is approximately 9.8% higher than the average over all 4 quarters.
D) The revenues in the third quarter of a year is approximately 9.8% higher than it would be during the fourth quarter.
Correct Answer:
Verified
Q79: Instruction 14-4
The number of train passengers arriving
Q80: The method of least squares is used
Q81: Instruction 14-6
A local store developed a
Q82: Instruction 14-6
A local store developed a
Q83: Instruction 14-6
A local store developed a
Q85: Instruction 14-8
The number of cases of
Q86: Instruction 14-8
The number of cases of
Q87: Instruction 14-7
The monthly advertising expenditures of
Q88: Instruction 14-9
The president of a chain
Q89: Instruction 14-10
The executive vice president of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents