TABLE 16-1 the Number of Cases of Chardonnay Wine Sold by a by a Paso

question 44

Multiple Choice

TABLE 16-1
The number of cases of chardonnay wine sold by a Paso Robles winery in an 8-year period follows.
-After estimating a trend model for annual time-series data, you obtain the following residual plot against time.
The problem with your model is that

• A) the cyclical component has not been accounted for.
• B) the seasonal component has not been accounted for.
• C) the trend component has not been accounted for.
• D) the irregular component has not been accounted for.

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Definitions:

Simple Linear Regression

A statistical method used to model the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Normally Distributed

A statistical distribution that is symmetrical about the mean, where most observations cluster around the central peak and the probabilities for values further away from the mean taper off equally in both directions.

Parameters

In statistics, parameters are numerical characteristics of a population, such as its mean or standard deviation.

Independent

In a statistical context, refers to variables or events that are not influenced by other variables in a study; their occurrence does not depend on another.