SCENARIO 16-13 Given Below Is the Monthly Time Series Data for U.S.retail

question 128

Short Answer

SCENARIO 16-13
Given below is the monthly time series data for U.S.retail sales of building materials over a specific year.
The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1^st month is 0:
Linear trend model:

Quadratic trend model:
Third-order autoregressive::

Below is the residual plot of the various models:

-Referring to Scenario 16-13,what is the p-value of the t test statistic for testing the appropriateness of the third-order autoregressive model?

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Definitions:

Nonlabor Income

Earnings received from sources other than employment, such as investments, pensions, or inheritances.

Wage Rate

The amount of compensation an employee receives per unit of time or output, typically expressed per hour or piece.

Budget Equation

A mathematical representation that illustrates the balance between a consumer's income and the total cost of their consumption choices at given prices.

Leisure

Leisure refers to the time available to an individual when not engaged in work, when one can relax, engage in recreational activities or hobbies.