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 81

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 for Q₁ in the regression equation (-0.129) which has a p-value of 0.492,which of the following is the best interpretation of this result?

• A) The revenues in the first quarter of the year are significantly different than the revenues in the fourth quarter (\(\alpha\) = 0.05).
• B) The revenues in the first quarter of the year are not significantly different than the revenues in the fourth quarter (\(\alpha\)= 0.05).
• C) The revenues in the first quarter of the year are significantly different than the revenues in an average quarter (\(\alpha\) = 0.05).
• D) The revenues in the first quarter of the year are not significantly different than the revenues in an average quarter (\(\alpha\) = 0.05).

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Definitions:

Communication Competency

The ability to effectively convey information and understand messages in various contexts and through multiple channels.

Workplace Incivility

Low-intensity deviant behavior with ambiguous intent to harm the target, violating norms for mutual respect in the workplace.

Payroll Cycle

The periodic process of compensating employees, typically involving calculation, distribution, and reporting of earnings on a regular schedule, such as weekly or monthly.

Communication Competency

The ability to effectively convey, receive, and interpret messages in both personal and professional contexts.