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

question 116

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, using the regression equation, which of the following values is the best forecast for the number of contracts in the third quarter of 2009?

• A) 49091
• B) 133352
• C) 421697
• D) 1482518

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Definitions:

Gross Margin

A company's total sales revenue minus its cost of goods sold (COGS), divided by total sales revenue, expressed as a percentage.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business, such as rent, salaries, and insurance premiums.

Sales Increase

A rise in the number of products or services sold, often indicating a growth in a company's business activities and revenue.

Risk/Reward Tolerance

An individual's or entity’s capacity to assume risk with the expectation of receiving a corresponding return, balancing between potential gains and losses.