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, in testing the coefficient of X in the regression equation (0.117) the results were a t-statistic of 9.08 and an associated p-value of 0.0000. Which of the following is the best interpretation of this result?

A) The quarterly growth rate in the number of contracts is significantly different from 0% (α = 0.05) .
B) The quarterly growth rate in the number of contracts is not significantly different from 0% (α = 0.05) .
C) The quarterly growth rate in the number of contracts is significantly different from 100% (α = 0.05) .
D) The quarterly growth rate in the number of contracts is not significantly different from 100% (α = 0.05) .