A Time Series Regression Equation for a Surfboard Manufacturing Company

question 142

Multiple Choice

A time series regression equation for a surfboard manufacturing company in Australia is given below: Y = 35 + 4Q₁ + 0.5Q₃ + 8Q₄ + 3t
With t in quarters and the origin is December 2010 and Q₁ is the indicator variable for March, Q₃ is the indicator variable for September and Q₄ is the indicator variable for December.
Which of the following statements is correct regarding the coefficient of Q₄?

• A) This company expects to sell 8 more surfboards in the December quarter than in the March quarter or the September quarter.
• B) This company expects to sell 8 more surfboards in the December quarter than in the June quarter.
• C) This company expects to sell 8 more surfboards in the June quarter than in the December quarter.
• D) None of these choices are correct.

---

Definitions:

Instinctive Drift

The phenomenon where an animal's learned behavior reverts to its innate behaviors, overriding conditioned responses.

Behavior Modification

A psychological treatment method that alters undesirable behaviors through rewards, punishments, or other strategies.

Tokens

Symbolic, often physical, items used in a token economy system to reward desirable behavior and which can be exchanged for other rewards.

Biofeedback

The use of sensitive equipment to give people precise feedback about internal physiological processes so that they can learn, with practice, to exercise control over them.