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

question 153

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,if one decides to use the Third-Order Autoregressive model ,what will the predicted real operating revenue for the company be in 2013?

• A)$11.55 billion
• B)$11.62 billion
• C)$11.84 billion
• D)$12.47 billion

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Definitions:

Critical Values

Specific points on the scale of a test statistic that define regions where the hypothesis test will reject the null hypothesis in favor of the alternative.

Replicate

To duplicate an experiment or study with the aim of verifying the original findings.

Degrees Of Freedom

The total of independent variables or amounts that may be allocated to a statistical distribution.

Error

A discrepancy between a computed, estimated, or measured value and the true, specified, or theoretically correct value.