TABLE 16-4 Given Below Are EXCEL Outputs for Various Estimated Autoregressive Models

question 127

Multiple Choice

TABLE 16-4
Given below are EXCEL outputs for various estimated autoregressive models for a company's real operating revenues (in billions of dollars) from 1985 to 2008. From the data, we also know that the real operating revenues for 2006, 2007, and 2008 are 11.7909, 11.7757 and 11.5537, respectively.
AR(1) Model:
AR(2) Model:
AR(3) Model:

-Referring to Table 16-4 and using a 5% level of significance, what is the appropriate AR model for the company's real operating revenue?

• A) AR(1)
• B) AR(2)
• C) AR(3)
• D) Any of the above.

---

Definitions:

Genetic Disorder

A disease or condition caused by an abnormality in an individual's DNA, which can be inherited from parents or result from a gene mutation.

Reversibility

The cognitive ability to understand that actions can be reversed, returning to the original state, a concept central to Piaget's theory of cognitive development.

Divergent Thinking

An approach or technique employed to stimulate creative thinking by considering numerous potential answers.

Encoding

The process of converting information into a form that can be stored in memory.