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 Q₂ (-0.054) in the regression equation is:

A) the revenues in the second quarter of a year is approximately 5.4% lower than the average over all 4 quarters.
B) the revenues in the second quarter of a year is approximately 5.4% lower than it would be during the fourth quarter.
C) the revenues in the second quarter of a year is approximately 11.69% lower than the average over all 4 quarters.
D) the revenues in the second quarter of a year is approximately 11.69% lower than it would be during the fourth quarter.