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 7

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,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 than 0% (\(\alpha\) = 0.05).
• B) The quarterly growth rate in revenues is not significantly different than 1.2% (\(\alpha\) = 0.05).
• C) The quarterly growth rate in revenues is not significantly different than 0% (\(\alpha\)= 0.05).
• D) The quarterly growth rate in revenues is significantly different than 1.2% (\(\alpha\) = 0.05).