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

question 99

True/False

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 model based on the residual plots is the quadratic-trend regression model.

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Definitions:

Sharecroppers

Laborers who farm land owned by another person and pay rent either in cash or as a portion of the crop, commonly in the post-Civil War South in the United States.

Cotton

A soft, fluffy staple fiber that grows in a boll around the seeds of cotton plants, used in the textile industry.

Cotton Production

The cultivation and harvesting of cotton plants, primarily for the textile industry, historically a major driver of the economy, especially in the American South.