TABLE 16-12 A Local Store Developed a Multiplicative Time-Series Model to Forecast

question 103

Multiple Choice

TABLE 16-12
A local store developed a multiplicative time-series model to forecast its revenues in future quarters,using quarterly data on its revenues during the 5-year period from 2008 to 2012.The following is the resulting regression equation:
log₁₀
= 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 2008
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 is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise
-Referring to Table 16-12,the best interpretation of the coefficient of Q₃ (0.098) in the regression equation is

---

Definitions:

Free-Rein Leadership

A leadership style where employees are given significant autonomy and decision-making power.

Own Decisions

Personal or organizational choices made independently without external influence.

Decentralization

Decision making based at lower levels of the organization.

Operating Employees

Staff members who are directly involved in the day-to-day operations of a business, contributing to its core activities and services.