TABLE 16-13 A Local Store Developed a Multiplicative Time-Series Model to Forecast

Multiple Choice

TABLE 16-13
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the 4-year period from 2005 to 2009. The following is the resulting regression equation:


-Referring to Table 16-13, the best interpretation of the constant 6.102 in the regression equation is:

A) the fitted value for the first quarter of 2005, prior to seasonal adjustment, is log₁₀(6.102) .
B) the fitted value for the first quarter of 2005, after seasonal adjustment, is log₁₀(6.102) .
C) the fitted value for the first quarter of 2005, prior to seasonal adjustment, is 10^6.102.
D) the fitted value for the first quarter of 2005, after seasonal adjustment, is 10^6.102.