Prices of Crude Oil Have Been Steadily Rising Over the Last

question 63

Multiple Choice

Prices of crude oil have been steadily rising over the last two years (The Wall Street Journal, December 14, 2010) . The monthly data on price per gallon of unleaded regular gasoline in the United States from January 2009 to December 2010 were available. Three trend models were created starting with t = 1 and the following output was generated. Which of the following would be a difference in the forecasts for the price of regular unleaded gasoline for February 2011 comparing two trend models: cubic and quadratic?

• A) $0.01
• B) $0.02
• C) $0.03
• D) $0.04

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Definitions:

Annual Rent

The total amount of money paid for the use of property or equipment for a year.

Adjusting Entries

Documentation made at the culmination of an accounting period, aiming to allocate revenues and expenses to the correct timeframe of their occurrence.

Fiscal Year

A one-year period used for financial reporting and budgeting, which may not align with the calendar year.

Net Income

Represents the total profit of a company after all expenses and taxes have been subtracted from total revenue.