Refer to the Following:
a Forecaster Used the Regression Equation $Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$

question 24

Multiple Choice

Refer to the following:
A forecaster used the regression equation
$Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$
and quarterly sales data for 1996I-2013IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and
$D _ { 1 } , D _ { 2 }$ and
$D _ { 3 }$ are dummy variables for quarters I, II, and III.
$$\begin{array} { | l l l l l l } \hline \text { DEPENDENTVARIAELE: } & \text { aT } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ON F } \\\text { OESERVATIONS: } & 64 & \text { 0.8768 } & 107.982 & 0.0001 & \\& & \text { PARAMETER } & \text { STANDARD } & & \\\text { VARIAELE } & & \text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & & 30.0 & 12.8 & 2.34 & 0.0224 \\\text { T } & & 1.5 & 0.70 & 2.14 & 0.0362 \\\text { D1 } & & 10.0 & 3.0 & 3.33 & 0.0015 \\\text { D2 } & & 25.0 & 7.2 & 3.47 & 0.0010 \\\text { D3 } & & 40.0 & 15.8 & 2.53 & 0.0140 \\\hline\end{array}$$
-Using a 5 percent significance level, these estimation results indicate that

• A) sales in the first quarter are significantly greater than sales in any other quarter.
• B) sales in the second quarter are significantly greater than sales in any other quarter.
• C) sales in the third quarter are significantly greater than sales in any other quarter.
• D) sales in the fourth quarter are significantly greater than sales in any other quarter.

Understand the criteria for evaluating deductive and inductive arguments.

Recognize the importance of sample size and variety in generalizations.

Identify the role of confirming and disconfirming evidence in inductive reasoning.

Understand the concept of confirmation bias and its impact on reasoning.

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Definitions:

Impose

To forcibly apply or introduce rules, taxes, punishments, or ideas onto others without their consent.

Will

The mental faculty by which an individual decides upon and initiates action, or in legal contexts, a document specifying the distribution of someone's estate after their death.

Annihilate

To destroy completely, leaving nothing remaining.