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 coefficient of Q₃ (0.617) in the regression equation is:

A) the number of contracts in the third quarter of a year is approximately 62% higher than the average over all 4 quarters.
B) the number of contracts in the third quarter of a year is approximately 62% higher than it would be during the fourth quarter.
C) the number of contracts in the third quarter of a year is approximately 314% higher than the average over all 4 quarters.
D) the number of contracts in the third quarter of a year is approximately 314% higher than it would be during the fourth quarter.