TABLE 16-9 Given Below Are Excel Outputs for Various Estimated Autoregressive Models

question 58

Multiple Choice

TABLE 16-9
Given below are Excel outputs for various estimated autoregressive models for a company's real operating revenues (in billions of dollars) from 1985 to 2008. From the data, you also know that the real operating revenues for 2006, 2007, and 2008 are 11.7909, 11.7757 and 11.5537, respectively.
First-Order Autoregressive Model:

Second-Order Autoregressive Model:

Third-Order Autoregressive Model:

-Referring to Table 16-9 and using a 5% level of significance, what is the appropriate autoregressive model for the company's real operating revenue?

• A) First-Order Autoregressive Model
• B) Second-Order Autoregressive
• C) Third-Order Autoregressive
• D) Any of the above

---

Definitions:

Dealignment Theory

The theory that suggests a decline in the political influence of pre-existing social groups and the rise of individual voter choice.

Electoral Stability

The condition in which an electoral system maintains consistent patterns in voter behavior and party strength over time.

Voter Stability

The extent to which voters remain loyal to a particular political party or candidate over multiple election cycles.

Party Allegiance

The loyalty of an individual or group to a specific political party, often influencing voting patterns and political actions.