Which of the Following Models Is Considered for a Quarterly

question 52

Multiple Choice

Which of the following models is considered for a quarterly time series that seems to change on average by a fixed amount and seems to have seasonality?

• A) ln(y_t) = β₀ + β₁d₁ + β₂d₂ + β₃d₃ + β₄t + ε_t
• B) y_t = β₀ + β₁d₁ + β₂d₂ + β₃d₃ + β₄t + ε_t
• C) ln(y_t) = β₀ + β₁d₁ + β₂d₂ + β₃d₃ + β₄d₄ + β₅t + ε_t
• D) y_t = β₀ + β₁d₁ + β₂d₂ + β₃d₃ + β₄d₄ + β₅t + ε_t

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Definitions:

Net Income

The net income of a company, calculated by deducting all expenditures and taxes from the total revenue.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Agreement

A mutual understanding or contract between parties outlining terms and conditions for a specific arrangement or transaction.

Persons

Human beings as individuals or considered collectively, especially in a legal or formal context.