Solved

SCENARIO 16-12 A Local Store Developed a Multiplicative Time-Series Model to Forecast

question 9

Multiple Choice

SCENARIO 16-12
A local store developed a multiplicative time-series model to forecast its revenues in future quarters,using quarterly data on its revenues during the 5-year period from 2009 to 2013.The following is the resulting regression equation:
log₁₀Y^ˆ = 6.102 + 0.012 X - 0.129 Q₁ - 0.054 Q₂ + 0.098 Q₃
where
Y^ˆis the estimated number of contracts in a quarter.
X is the coded quarterly value with X = 0 in the first quarter of 2008.
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.
Time-Series Forecasting 16-31
-Referring to Scenario 16-12,the best interpretation of the coefficient of Q₂ (-0.054) in the regression equation is:

Definitions:

Smoking More

The act of consuming tobacco products at an increased rate over time.

Graduating High School

The act of completing the necessary coursework and receiving a diploma or certificate indicating that one has met the educational requirements of their secondary education.

Firearm

A portable weapon that expels projectiles, such as bullets, through a barrel by the force of an explosion or other form of energy.

Motor Vehicle Accidents

Incidents involving collisions or crashes between motor vehicles, or between motor vehicles and pedestrians, leading to injury, death, or property damage.