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, in testing the significance of the coefficient of X in the regression equation (0.012) which has a p-value of 0.0000. Which of the following is the best interpretation of this result?

A) The quarterly growth rate in revenues is significantly different from 0% (α = 0.05) .
B) The quarterly growth rate in revenues is not significantly different from 0% (α = 0.05) .
C) The quarterly growth rate in revenues is significantly different from 1.2% (α = 0.05) .
D) The quarterly growth rate in revenues is not significantly different from 1.2% (α = 0.05) .