SCENARIO 16-12 a Local Store Developed a Multiplicative Time-Series Model

question 141

Multiple Choice

SCENARIO 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 5-year period from 2009 to 2013.The following is the resulting regression equation: where is the estimated number of contracts in a quarter. X is the coded quarterly value with X = 0 in the first quarter of 2008. is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise. is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Scenario 16-12, in testing the significance of the coefficient of X in the regression equation (0.012) which has a p-value of 0.0000.Which of the following is the best interpretation of this result?

• A)The quarterly growth rate in revenues is significantly different from 0% ( = 0.05).
• B)The quarterly growth rate in revenues is not significantly different from 0% ( = 0.05).
• C)The quarterly growth rate in revenues is significantly different from 1.2% ( = 0.05).
• D)The quarterly growth rate in revenues is not significantly different from 1.2% ( = 0.05).

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Definitions:

Rational Persuasion

A technique that involves persuading others through the use of rational reasoning and verifiable data to adopt a certain perspective or undertake a specific action.

Sell Decision

A sell decision is a financial strategy or choice made by an investor or a firm to dispose of an asset or security.

Joint Decision Procedure

A collaborative process involving two or more parties making a decision together.

Direct Influence

Direct influence involves exerting control or persuading others through straightforward means, without the intermediary of indirect or subtle methods.