Instruction 14-5
A local store developed a multiplicative time-series model to forecast its revenues in future quarters,using quarterly data on its revenues during the 4-year period from 2005 to 2009.The following is the resulting regression equation:
log 10 = 6.102 + 0.012 X - 0.129 Q1 - 0.054 Q2 + 0.098 Q3
Where
is the estimated number of contracts in a quarter
X is the coded quarterly value with X = 0 in the first quarter of 2005.
Q1 is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise.
Q2 is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.
Q3 is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Instruction 14-5,the best interpretation of the coefficient of Q2 (-0.054) in the regression equation is
A) the revenues in the second quarter of a year is approximately 11.69% lower than the average over all 4 quarters.
B) the revenues in the second quarter of a year is approximately 11.69% lower than it would be during the fourth quarter.
C) the revenues in the second quarter of a year is approximately 5.4% lower than it would be during the fourth quarter.
D) the revenues in the second quarter of a year is approximately 5.4% lower than the average over all 4 quarters.
Correct Answer:
Verified
Q76: A model that can be used to
Q80: The method of least squares is used
Q86: Instruction 14-4
A contractor developed a multiplicative
Q87: Instruction 14-10
The number of train passengers arriving
Q88: Instruction 14-4
A contractor developed a multiplicative
Q89: Instruction 14-4
A contractor developed a multiplicative
Q90: Instruction 14-10
The number of train passengers arriving
Q92: Instruction 14-5
A local store developed a
Q95: Instruction 14-5
A local store developed a
Q96: Instruction 14-4
A contractor developed a multiplicative
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