SCENARIO 16-12 a Local Store Developed a Multiplicative Time-Series Model

Multiple Choice

SCENARIO 16-12 A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the 5-year period from 2009 to 2013.The following is the resulting regression equation: where is the estimated number of contracts in a quarter. X is the coded quarterly value with X = 0 in the first quarter of 2008. is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise. is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Scenario 16-12, 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% ( = 0.05) .
B) The quarterly growth rate in revenues is not significantly different from 0% ( = 0.05) .
C) The quarterly growth rate in revenues is significantly different from 1.2% ( = 0.05) .
D) The quarterly growth rate in revenues is not significantly different from 1.2% ( = 0.05) .