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

question 159

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 estimated quarterly compound growth rate in revenues is around

• A) 12%.
• B) 28%.
• C) 2.8%.
• D) 1.2%.

---

Definitions:

Male Spider

A reference to the male of the spider species, which often engages in complex mating rituals and sometimes faces post-mating cannibalism by the female.

Semen Ejection

The process by which semen is expelled from the male reproductive tract, generally during ejaculation, as part of the reproductive process.

Low-Ranking Males

Male individuals positioned at the lower end of a social hierarchy, often having less access to resources and mating opportunities.

Reproductive Variance

Differences in reproductive success among individuals within a population, often influencing evolutionary outcomes.