Instruction 14-6
a Local Store Developed a Multiplicative Time-Series Model $$\log _ { 10 } \hat { Y } = 6.102 + 0.012 X - 0.129 Q _ { 1 } - 0.054 Q _ { 2 } + 0.098 Q _ { 3 }$$

question 89

Multiple Choice

Instruction 14-6
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the four-year period from 2005 to 2009. The following is the resulting regression equation:
$$\log _ { 10 } \hat { Y } = 6.102 + 0.012 X - 0.129 Q _ { 1 } - 0.054 Q _ { 2 } + 0.098 Q _ { 3 }$$
Where
$X$ is the coded quarterly value with $X = 0$ in the first quarter of 2005 .
$Q _ { 1 }$ is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise.
$Q _ { 2 }$ is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.
$Q _ { 3 }$ is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Instruction 14-6,the estimated quarterly compound growth rate in revenues is around

• A) 2.8%.
• B) 12%.
• C) 1.2%.
• D) 28%.

---

Definitions:

Supervision

The act of overseeing the work or tasks of others, often involving guidance, support, and direction to ensure standards are met.

Inappropriate Behavior

Conduct that is not suitable or proper in a particular setting, context, or situation, often violating social norms or expectations.

Personal Beliefs

Personal beliefs encompass the convictions or acceptances held by an individual as true, which guide their actions and attitudes on a personal level.

Supervision

The act of overseeing or directing work or workers, often to ensure quality and efficiency.