A Forecaster Used the Regression Equation $Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$

question 42

Multiple Choice

A forecaster used the regression equation $Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$ and quarterly sales data for 2004I-2021IV (t = 1,...,64) for an appliance manufacturer to obtain the results shown below.Q is quarterly sales,and $D _ { 1 } , D _ { 2 }$ and $D _ { 3 }$ are dummy variables for quarters I,II,and III. At the 5 percent level of significance,is there a statistically significant trend in sales?

• A)No,because 1.5 < 2.66.
• B)No,because 1.5 < 2.00.
• C)No,because 2.14 < 2.66.
• D)Yes,because 2.14 > 2.00.
• E)none of the above

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Definitions:

Durable Good

A type of good that does not quickly wear out and is capable of being used for a period of time, often years, before needing replacement.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.

Substitute Good

A product or service that consumers see as a viable alternative to another product, where an increase in the price of one leads to an increase in demand for the other.

Laptop Computers

Portable personal computers with a clamshell form factor, suitable for mobile use and equipped with a keyboard and a screen.