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TABLE 16-14 a Contractor Developed a Multiplicative Time-Series Model to Forecast the Forecast

question 34

Multiple Choice

TABLE 16-14
A contractor developed a multiplicative time-series model to forecast the number of contracts in future quarters, using quarterly data on number of contracts during the 3-year period from 2008 to 2010. The following is the resulting regression equation:
ln Ŷ = 3.37 + 0.117 X - 0.083 Q₁ + 1.28 Q₂ + 0.617 Q₃
where Ŷ 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.
Q₃ is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Table 16-14, in testing the coefficient of X in the regression equation (0.117) the results were a t-statistic of 9.08 and an associated p-value of 0.0000. Which of the following is the best interpretation of this result?

Definitions:

Internal Theories

Concepts and models developed within an organization or discipline to explain processes, behaviors, or phenomena.

Variables

Elements, features, or factors that are likely to vary or change within the context of a study or an experiment.

Dual-route Theories

Theoretical approaches suggesting two separate pathways or mechanisms in the brain for processing information, often used in the context of reading and language comprehension.

External Theories

Concepts or explanations developed to understand phenomena outside an individual or organization, often involving the broader environment or society.