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

question 18

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, the best interpretation of the coefficient of Q₃ (0.617) in the regression equation is:

• A) the number of contracts in the third quarter of a year is approximately 62% higher than the average over all 4 quarters.
• B) the number of contracts in the third quarter of a year is approximately 62% higher than it would be during the fourth quarter.
• C) the number of contracts in the third quarter of a year is approximately 314% higher than the average over all 4 quarters.
• D) the number of contracts in the third quarter of a year is approximately 314% higher than it would be during the fourth quarter.

---

Definitions:

Cutting-Edge Methods

The most advanced, innovative techniques or practices currently available in a field.

Assess

To assess the characteristics, capability, or value of something.

Leadership Effectiveness

The extent to which a leader is successful in achieving desired outcomes through the direction, influence, and motivation of others.

Level of Conceptualization

The degree to which an individual is able to understand abstract concepts, ideas, or complexities.