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 coefficient of X (0.012) in the regression equation is:

A) the quarterly compound growth rate in revenues is around 2.8%.
B) the annual growth rate in revenues is around 2.8%.
C) the quarterly growth rate in revenues is around 1.2%.
D) the annual growth rate in revenues is around 1.2%.