THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 105

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
The table below shows the quarterly sales of a particular kind of vaccine for dogs.The forecaster uses autoregressive models with p = 3 to forecast the sales for future time periods.

-The autoregressive equation is:

• A)Sales = 104 + 0.231 Saleslag 1 - 0.439 Saleslag 2 + 0.397 Saleslag 3
• B)Sales = 0.397 + 0.231 Saleslag 1 - 0.439 Saleslag 2 + 104 Saleslag 3
• C)Sales = 104 + 0.439 Saleslag 1 - 0.231 Saleslag 2 + 0.397 Saleslag 3
• D)Sales = 0.397 + 0.439 Saleslag 1- 0.231 Saleslag 2 + 104 Saleslag 3

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Definitions:

Pure Competition

A market structure characterized by a large number of buyers and sellers dealing in perfectly substitutable goods or services.

Market Entry

Refers to the process or strategy employed by an organization to start selling its products or services in a new market or industry segment.

Profit Maximization

The technique used by entities to determine the most profitable pricing and output levels.

Long-Run Equilibrium

A state in which all firms in a market or industry are making normal profits, and there is no incentive for existing firms to exit the market or for new firms to enter.