Consider a Time Series with 15 Quarterly Sales Observations

question 69

Essay

Consider a time series with 15 quarterly sales observations.Using the quadratic trend model,the following partial computer output was obtained. Test the significance of the t² term at α =.05.State the critical T value (rejection point)and the p-value.Make your decision using a two-sided null hypothesis.

---

Definitions:

Organizational Profitability

The ability of an organization to generate more revenue than its expenses, leading to financial gain.

Pre-Tax Profits

The amount of earnings of a company before the deduction of taxes, serving as a key indicator of financial health and operational efficiency.

Bonus Pool

A fund allocated for bonuses, typically based on company performance, and distributed to employees based on predetermined criteria.

Fixed Percentage

A specified, constant proportion or rate that does not change with variation in base quantities, often used in financial contexts like interests or commissions.