TABLE 16-13
Given below is the monthly time-series data for U.S.retail sales of building materials over a specific year. The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1 st month is 0:
Linear trend model: Quadratic trend model: Exponential trend model: First-order autoregressive: Second-order autoregressive: Third-order autoregressive: Below is the residual plot of the various models:
-True or False: Referring to Table 16-13,you can conclude that the quadratic term in the quadratic-trend model is statistically significant at the 5% level of significance.

Question

TABLE 16-13
Given below is the monthly time-series data for U.S.retail sales of building materials over a specific year.  The results of the linear trend,quadratic trend,exponential trend,first-order autoregressive,second-order autoregressive and third-order autoregressive model are presented below in which the coded month for the 1 st month is 0:
Linear trend model:  Quadratic trend model:  Exponential trend model:  First-order autoregressive:  Second-order autoregressive:  Third-order autoregressive:  Below is the residual plot of the various models: 
-True or False: Referring to Table 16-13,you can conclude that the quadratic term in the quadratic-trend model is statistically significant at the 5% level of significance.

Quizplus · Accepted Answer

To determine whether the quadratic term in the quadratic-trend model is statistically significant at the 5% level of significance, we need to look at the p-value for the quadratic term in the model. If the p-value is less than 0.05, we can conclude that the quadratic term is statistically significant at the 5% level of significance. However, the table does not provide the p-value for the quadratic term. Therefore, we cannot use this table to determine whether the quadratic term is statistically significant at the 5% level of significance.

TABLE 16-13 Given Below Is the Monthly Time-Series Data for U.S.retail Sales