TABLE 16-5 a Contractor Developed a Multiplicative Time-Series Model to Forecast the Forecast

Multiple Choice

TABLE 16-5
A contractor developed a multiplicative time-series model to forecast the number of contracts in future quarters, using quarterly data on number of contracts during the 3-year period from 2006 to 2008. The following is the resulting regression equation:

-Referring to Table 16-5, the best interpretation of the constant 3.37 in the regression equation is:

A) the fitted value for the first quarter of 2006, prior to seasonal adjustment, is log₁₀ 3.37.
B) the fitted value for the first quarter of 2006, after to seasonal adjustment, is log₁₀ 3.37.
C) the fitted value for the first quarter of 2006, prior to seasonal adjustment, is 10^3.37.
D) the fitted value for the first quarter of 2006, after to seasonal adjustment, is 10^3.37.