Multiple Choice
The estimated regression equation is yt = 448 + 12t + 18 Qtr1 - 26 Qtr2 + 3 Qtr3. The regression model has three quarterly binaries. The model was fitted to 12 periods of quarterly data starting with the first quarter. Why is there no fourth quarterly binary for Qtr4?
A) Because the researcher made a mistake. (We must include a binary for each quarter.)
B) Because it is unnecessary. (Its value is implied by the other three binaries.)
C) Because the fourth quarter binary is assumed to be the same as the first quarter.
D) Because there is no seasonality in the fourth quarter in most time series.
Correct Answer:
Verified
Correct Answer:
Verified
Q90: Averaging the first six data values is
Q91: Bob collected data on U.S. consumer bankruptcies
Q92: If a fitted trend equation is y<sub>t</sub>
Q93: Fluctuations caused by strikes and floods are:<br>A)cyclical
Q94: Occam's Razor says always to choose the
Q96: For these data, what is the
Q97: Which trend would you choose to forecast
Q98: Moving averages are often used for making
Q99: The fitted sales trend over the last
Q100: Over long periods of time, multiplicative time-series