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

question 126

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 estimated quarterly compound growth rate in revenues is around

• A) 1.2%.
• B) 2.8%.
• C) 12%.
• D) 28%.

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Definitions:

Anchors Tendons

A term that may refer to structures or techniques used to attach tendons firmly to bones.

Periosteum

A dense layer of vascular connective tissue enveloping the bones except at the surfaces of the joints.

Bone Growth

A physiological process resulting in the increase in size of bones through the activity of osteoblasts, driven by genetic and environmental factors.

Lacuna

A small space, gap, or cavity, often found in bone and cartilage, where cells such as chondrocytes reside.