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

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Definitions:

Intense

Characterized by a high degree of emotional, physical, or mental effort or concentration.

Event

An occurrence or happening, especially one of significance, that can be planned or unplanned.

Equity Theory

A theory in social psychology that suggests individuals evaluate their relationships based on the balance or fairness of what they give and receive.

Procedural Fairness

Fairness that occurs when the process used to determine work outcomes is seen as reasonable.