A Consulting Firm Estimates the Following Quarterly Sales Forecasting Model

question 48

Multiple Choice

A consulting firm estimates the following quarterly sales forecasting model: The equation is estimated using quarterly data from 2005I-2015III t = 1,...,43) .The variable D is a dummy variable for the second quarter where: D = 1 in the second quarter,and 0 otherwise.
The results of the estimation are:
Give the above,at the 1 percent level of significance,is there a statistically significant trend in sales?

• A)No,since 1.86 < 2.704
• B)No,since 0.55 < 1.86
• C)No,since 1.02 < 2.704
• D)Yes,since 1.86 > 0.55
• E)Yes,since 3.38 > 2.704

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Definitions:

Property Right

Legal rights to use, control, and derive benefits from a resource or property.

Pollution

The introduction of harmful substances or products into the environment, causing adverse effects on living organisms and ecosystems.

Public Good

A product or service that is provided without profit to all members of a society, either freely or by the government, and which is non-excludable and non-rivalrous.

Marginal Benefit

The additional satisfaction or utility a consumer receives from consuming an additional unit of a good or service.