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

question 130

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, in testing the coefficient for Q₁ in the regression equation (-0.083) , the results were a t-statistic of -0.66 and an associated p-value of 0.530. Which of the following is the best interpretation of this result?

• A) The number of contracts in the first quarter of the year is significantly different from the number of contracts in an average quarter (α = 0.05).
• B) The number of contracts in the first quarter of the year is not significantly different from the number of contracts in an average quarter (α = 0.05).
• C) The number of contracts in the first quarter of the year is significantly different from the number of contracts in the fourth quarter for a given coded quarterly value of X (α = 0.05).
• D) The number of contracts in the first quarter of the year is not significantly different from the number of contracts in the fourth quarter for a given coded quarterly value of X (α = 0.05).