A Time Series Regression Equation for a Surfboard Manufacturing Company

question 3

Multiple Choice

A time series regression equation for a surfboard manufacturing company in Australia is given below: Y = 35 + 4Q₁ + 0.5Q₃ + 8Q₄ + 3t
With t in quarters and the origin is December 2010 and Q₁ is the indicator variable for March, Q₃ is the indicator variable for September and Q₄ is the indicator variable for December.
Which of the following statements is correct?

• A)The overall general movement of number of surfboards sold by this company is positive because the coefficients of the indicator variables are positive.
• B)The overall general movement of number of surfboards sold by this company is positive because the intercept is positive.
• C)The overall general movement of number of surfboards sold by this company is positive because the coefficient of time t is positive.
• D)None of these choices are correct.

---

Definitions:

Axon

Root, or single fiber, of a neuron that carries messages to other neurons.

Voltage Difference

The measure of electrical potential between two points, which drives the flow of electrons or current in a circuit.

Cell Membrane

The biological membrane that separates the interior of all cells from the outside environment, providing structural support and controlling the movement of substances in and out of cells.

Microelectrode

A microscopic insulated wire or a saltwater-filled glass tube whose uninsulated tip is used to stimulate or record from neurons.