TABLE 16-5 a Contractor Developed a Multiplicative Time-Series Model to Forecast the Forecast

question 9

Multiple Choice

TABLE 16-5
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 2006 to 2008. The following is the resulting regression equation:

-Referring to Table 16-5, to obtain a forecast for the first quarter of 2009 using the model, which of the following sets of values should be used in the regression equation?

• A) X = 12, Q₁ = 0, Q₂ = 0, Q₃ = 0
• B) X = 12, Q₁ = 1, Q₂ = 0, Q₃ = 0
• C) X = 13, Q₁ = 0, Q₂ = 0, Q₃ = 0
• D) X = 13, Q₁ = 1, Q₂ = 0, Q₃ = 0

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