The Manufacturer of Beanie Baby Dolls Used Quarterly Price Data $P _ { t } = a + b t + c _ { 1 } D 1 _ { t } + c _ { 2 } D 2 _ { t } + c _ { 3 } D 3 _ { t }$

question 14

Multiple Choice

The manufacturer of Beanie Baby dolls used quarterly price data for 2012I - 2020IV (t = 1,...,36) and the regression equation $P _ { t } = a + b t + c _ { 1 } D 1 _ { t } + c _ { 2 } D 2 _ { t } + c _ { 3 } D 3 _ { t }$ to forecast doll prices in the year 2021. $P _ { t}$ is the quarterly price of dolls,and $D 1 _ { t } , D 2 _ { t }$ and $D 3 _ { t }$ are dummy variables for quarters I,II,and III,respectively. In any given year price tends to vary from quarter to quarter as follows:

• A)P_I > P_II > P_III > P_IV
• B)P_I > P_IV > P_III > P_II
• C)P_II > P_III > P_IV > P_I
• D)P_III > P_I > P_II > P_IV
• E)P_IV > P_III > P_II > P_I

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Definitions:

Modernization Theory

A theory suggesting that traditional societies will develop economically and socially to adopt the characteristics of industrialized societies through processes like technological innovation.

Underdeveloped Countries

describes countries with low levels of industrialization, inadequate infrastructural facilities, and a generally low standard of living.

Internal Characteristics

Traits or features that originate within an individual or entity, defining their innate qualities or attributes.

Dependency Theorists

Scholars who argue that economic disparities between nations arise from the exploitation of poorer countries by wealthier ones, leading to a state of dependency.