The Time-Series Model Y_t = T_t * C_t *S_t $\tilde { T} _ { 1}$

question 25

Multiple Choice

The time-series model y_t = T_t * C_t *S_t * R_t is used for forecasting,where T_t,C_t,S_t,and R_t are respectively the trend,cyclical,seasonal,and random variation components of the time series,and y_t is the value of the time series at time t.The following estimates are obtained: $\tilde { T} _ { 1}$ = 120, $\tilde { C } _ { t }$ = 1.02, $\tilde { S } _ { t }$ = 0.95,and $\hat { R } _ { 2 }$ = 0.90.The model will produce a forecast of:

• A) 122.870
• B) 104.652
• C) 116.280
• D) 102.600

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, resulting in a market balance.

Asymmetric Information

Asymmetric information occurs when one party in a transaction has more or better information than the other, potentially leading to an imbalance in the transaction.

Market Transaction

An exchange of goods, services, or financial assets in return for money between parties within a marketplace.