The Linear Regression Trend Model Was Applied to a Time

question 21

Short Answer

The linear regression trend model was applied to a time series sales data set based on the last 24 months' sales. The following partial computer output was obtained.
Test the significance of the time term at α =.05. State the critical t value and make your decision using a two-sided alternative.

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Definitions:

Output

The total amount of goods and services produced by an economy, company, or sector.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy want to sell at a given price level in the short term.

Spending Multiplier

A concept in economics that represents how changes in autonomous spending lead to changes in total economic output.

Budget Surplus

A situation where a government's revenues exceed its expenditures within a specific period.