A Time Series Regression Equation for a Surfboard Manufacturing Company

question 18

Multiple Choice

A time series regression equation for a surfboard manufacturing company in Australia is given below: Y = 35 + 4Q₁ + 0.5Q₃ + 8Q₄ + 3t
With t in quarters and the origin is December 2010 and Q₁ is the indicator variable for March, Q₃ is the indicator variable for September and Q₄ is the indicator variable for December.
Which of the following statements is correct?

• A) The overall general movement of number of surfboards sold by this company is positive because the coefficients of the indicator variables are positive.
• B) The overall general movement of number of surfboards sold by this company is positive because the intercept is positive.
• C) The overall general movement of number of surfboards sold by this company is positive because the coefficient of time t is positive.
• D) None of these choices are correct.

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Definitions:

Adequacy Of Consideration

The sufficiency of what is exchanged in a contract to make the agreement enforceable, ensuring each party receives something of value.

Bankruptcy

A legal procedure for dealing with debt problems of individuals and businesses; officially declared inability to pay outstanding debts.

Promissory Estoppel

A legal principle that prevents a promisor from denying a promise when the promisee relies on it to their detriment.

Consideration

A fundamental concept in contract law that refers to something of value (such as money, a promise, or an act) exchanged between parties as part of a contract.