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,in testing the significance of the coefficient of X in the regression equation (0.012) which has a p-value of 0.0000,which of the following is the best interpretation of this result?
A) The quarterly growth rate in revenues is significantly different than 0% ( = 0.05) .
B) The quarterly growth rate in revenues is not significantly different than 1.2% ( = 0.05) .
C) The quarterly growth rate in revenues is not significantly different than 0% ( = 0.05) .
D) The quarterly growth rate in revenues is significantly different than 1.2% ( = 0.05) .
Correct Answer:
Verified
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