Refer to the Following:
a Consulting Firm Estimates the Following $Q _ { t } = a + b t + c D$

question 64

Multiple Choice

Refer to the following:
A consulting firm estimates the following quarterly sales forecasting model:
$Q _ { t } = a + b t + c D$
The equation is estimated using quarterly data from 2003I-2013III (t = 1,..., 43) . The variable D is a dummy variable for the second quarter where:
D = 1 in the second quarter, and 0 otherwise.
The results of the estimation are:
$\begin{array}{rllll}\text { DEPENDENT VARIABLE: } & \text { QT } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ONF } \\\text { OBSERVATIONS: } & 43 & 0.8644 & 127.5 & 0.0001\\\\\text { VARIABLE } & \text { PARAMETER } & \text { STANDARD } & \\&\text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & 22.5 & 9.32 & 2.41 & 0.0201 \\\text { T } & 1.86 & 0.55 & 3.38 & 0.0016 \\\text { D } & 2.0 & 0.71 & 2.82 & 0.0075\end{array}$
-At the 1 percent level of significance, is there a statistically significant trend in sales?

• A) Yes, because 0.0016 < 0.01.
• B) No, because 0.0016 < 0.01.
• C) Yes, because 0.55 > 0.01.
• D) Yes, because 1.86 > 0.01.
• E) both c and d

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Definitions:

Phenotype

Characteristic observed in an individual due to the expression of his or her genotype.

Progeria

Severe retardation of growth after the first year accompanied by a senile appearance and death at an early age.

Parturition

The process of childbirth or the act of giving birth.

Physiological Changes

Modifications or adjustments in the functions or activities of the body as a response to various stimuli or environmental conditions.