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

question 116

Multiple Choice

TABLE 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 4-year period from 2005 to 2009. The following is the resulting regression equation:
log₁₀ = 6.102 + 0.012 X - 0.129 Q₁ - 0.054 Q₂ + 0.098 Q₃
where is the estimated number of contracts in a quarter.
X is the coded quarterly value with X = 0 in the first quarter of 2005.
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.
-Referring to Table 16-12, the best interpretation of the coefficient of Q₂ (-0.054) in the regression equation is

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Shivering

An involuntary response to cold, involving rapid, rhythmic muscle contractions to generate heat and increase body temperature.

Muscle Tissue

Muscle tissue is a specialized tissue in animals designed to contract and produce force and movement.

Epithelial Tissues

Layers of cells that cover internal and external surfaces of the body, including skin, glands, and lining of organs, serving as protective barriers and involved in absorption and secretion.

Basement Membrane

The thin, non-cell layer of an epithelial membrane that attaches to the underlying tissues; consists of tiny fibers and polysaccharides produced by the epithelial cells.