TABLE 16-13 A Local Store Developed a Multiplicative Time-Series Model to Forecast

question 42

Multiple Choice

TABLE 16-13
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the 4-year period from 2005 to 2009. The following is the resulting regression equation:


-Referring to Table 16-13, in testing the significance of the coefficient of X in the regression equation (0.012) which has a p-value of 0.0000. Which of the following is the best interpretation of this result?

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Definitions:

Derived Demand

The demand for a good or service that arises from the demand for another good or service, for example, the demand for steel being driven by the demand for automobiles.

Noncustomers

Individuals or entities that are currently not purchasing or using a company's products or services but could potentially be converted into customers.

Direct Competitor

Entities that offer the same or similar products or services within the same market space and vie for the same potential customer base.

Brand Competitor

A brand competitor is a company or product that offers goods or services that are similar and target the same customer base as another product or brand.