TABLE 16-4
Given Below Are EXCEL Outputs for Various

question 58

Multiple Choice

TABLE 16-4
Given below are EXCEL outputs for various estimated autoregressive models for Coca-Cola's real operating revenues (in billions of dollars) from 1975 to 1998. From the data, we also know that the real operating revenues for 1996, 1997, and 1998 are 11.7909, 11.7757 and 11.5537, respectively.
$\text { AR (1) Model: }$
$\begin{array}{lcccc}\hline & \text { Coeficients } & \text { Standard Error } & t \text { Stat } & p \text {-value } \\\hline \text { Intercept } & 0.1802077 & 0.39797154 & 0.452815546 & 0.655325119 \\\text { XLag1 } & 1.011222533 & 0.049685158 & 20.35260757 & 2.64373 \mathrm{E}-15\end{array}$


$\text { AR (2) Model: }$
$\begin{array}{lcccc}\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & p \text {-value } \\\hline \text { Intercept } & 0.30047473 & 0.4407641 & 0.681713257 & 0.503646149 \\\text { XLag1 } & 1.17322186 & 0.234737881 & 4.998008229 & 7.98541 \mathrm{E}-05 \\\text { XLag2 } & 0.183028189 & 0.250716669 & -0.730020026 & 0.474283347\end{array}$


$\text { AR (3) Model: }$
$\begin{array}{lrccc}\hline & \text { Coeficients } & \text { Standard Error } & t \text { Stat } & p \text {-value } \\\hline \text { Interept } & 0.313043288 & 0.514437257 & 0.608515972 & 0.550890271 \\\text { XLag1 } & 1.173719587 & 0.246490594 & 4.761721601 & 0.000180926 \\\text { XLag2 } & -0.069378567 & 0.373086508 & -0.185958391 & 0.854678245 \\\text { XLag3 } & -0.122123515 & 0.282031297 & -0.433014053 & 0.670448392\end{array}$


-Referring to Table 16-4 and using a 5% level of significance, what is the appropriate AR model for Coca-Cola's real operating revenue?

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Definitions:

Additional Paid-In Capital

The amount of money investors have paid for shares above the nominal value during stock issuances, reflecting excess capital received by a company.

Dividends In Arrears

The unpaid dividends on preferred shares that have not been distributed to shareholders, typically because a company has insufficient profits.

Cumulative Preferred Stock

Preferred stocks where dividends accumulate if not paid in a given period and must be paid out before any dividends can be distributed to other types of shares.

Financial Statements

Consolidated documents presenting the financial activities and condition of a business, individual, or other entity.