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 for Q₁ in the regression equation (-0.129) which has a p-value of 0.492. Which of the following is the best interpretation of this result?

A) The revenues in the first quarter of the year are significantly different from the revenues in an average quarter (α = 0.05) .
B) The revenues in the first quarter of the year are not significantly different from the revenues in an average quarter (α = 0.05) .
C) The revenues in the first quarter of the year are significantly different from the revenues in the fourth quarter (α = 0.05) .
D) The revenues in the first quarter of the year are not significantly different from the revenues in the fourth quarter (α = 0.05) .