SCENARIO 16-9 Given Below Are EXCEL Outputs for Various Estimated Autoregressive Models

question 53

Multiple Choice

SCENARIO 16-9
Given below are EXCEL outputs for various estimated autoregressive models for a company's real operating revenues (in billions of dollars) from 1989 to 2012.From the data,you also know that the real operating revenues for 2010,2011,and 2012 are 11.7909,11.7757 and 11.5537,respectively.
First-Order Autoregressive Model:
Second-Order Autoregressive Model:

-Referring to Scenario 16-9 and using a 5% level of significance,what is the appropriate autoregressive model for the company's real operating revenue?

• A)First-Order Autoregressive Model
• B)Second-Order Autoregressive
• C)Third-Order Autoregressive
• D)Any of the above

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Definitions:

Average Fixed Cost

The constant expenses associated with manufacturing divided by the amount of product created.

Mixers

Devices used to blend or mix various ingredients together, common in food processing and preparation.

Average Total Cost

The total cost of production divided by the number of units produced, representing the cost per unit.

Mixers

Devices used to mix various ingredients together or electronic sound equipment used for blending different sounds and channels.