TABLE 16-13 Given Below Is the Monthly Time-Series Data for U.S. Retail

question 43

True/False

TABLE 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 first month is 0:




-Referring to Table 16-13, you can conclude that the second-order autoregressive model is appropriate at the 5% level of significance.

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Definitions:

Test Statistic

A value calculated from sample data during a hypothesis test that is used to evaluate the strength of evidence against the null hypothesis.

Random Sample

A subset of individuals chosen from a larger set (population) where each individual has an equal chance of being selected.

Proportion

Represents a part or fraction of a whole, often expressed as a percentage or ratio.

Sample Size

The quantity of observations accumulated in a sample originating from a broader population.