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

question 58

Multiple Choice

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,the best autoregressive model using the 5% level of significance is

• A)first-order
• B)second-order
• C)third-order
• D)none of the above

---

Definitions:

China

A country located in East Asia, the world's most populous nation, with a rich history, dynamic economy, and significant global influence.

Child Mortality

Refers to the death of children under the age of five.

Developed Countries

Nations with a high level of economic development and standard of living, characterized by high income per capita, advanced technological infrastructure, and a wide range of services available to citizens.

Literacy

The ability to read and write, providing the fundamental skill for communication and learning in society.