TABLE 16-13 A Local Store Developed a Multiplicative Time-Series Model to Forecast

question 99

Multiple Choice

TABLE 16-13
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the 4-year period from 1998 to 2002. The following is the resulting regression equation:
log₁₀Y^{^} = 6.102 + 0.012 X - 0.129 Q₁ - 0.054 Q₂ + 0.098 Q₃
where
Y^{^} is the estimated number of contracts in a quarter
X is the coded quarterly value with X = 0 in the first quarter of 1998.
Q₁ is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise.
Q₂ is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.
Q₃ is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Table 16-13, the best interpretation of the constant 6.102 in the regression equation is

• A) the fitted value for the first quarter of 1998, after to seasonal adjustment, is 10^6.102.
• B) the fitted value for the first quarter of 1998, prior to seasonal adjustment, is log₁₀(6.102).
• C) the fitted value for the first quarter of 1998, prior to seasonal adjustment, is 10^6.102.
• D) the fitted value for the first quarter of 1998, after to seasonal adjustment, is log₁₀(6.102).

Comprehend the criteria for successful market segments and the concept of segment viability.

Understand the concept of the evoked set in consumer decision-making.

Explain various target marketing strategies and their relevance to reaching noncustomers.

Describe the consumer buying process and the impact of marketing activities on consumer decisions.

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Definitions:

Supply Curve

A visual diagram that illustrates the connection between a product's price and the amount of the product that sellers are prepared to offer.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Decrease in Quantity

A reduction in the amount of a good or service produced or available for sale.

Gardenburgers

A brand of meatless burgers made primarily from vegetables and grains.