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The Manufacturer of Beanie Baby Dolls Used Quarterly Price Data Pt=a+bt+c1D1t+c2D2t+c3D3tP _ { t } = a + b t + c _ { 1 } D 1 _ { t } + c _ { 2 } D 2 _ { t } + c _ { 3 } D 3 _ { t }

Question 46

Multiple Choice

The manufacturer of Beanie Baby dolls used quarterly price data for 2012I - 2020IV (t = 1,...,36) and the regression equation Pt=a+bt+c1D1t+c2D2t+c3D3tP _ { t } = a + b t + c _ { 1 } D 1 _ { t } + c _ { 2 } D 2 _ { t } + c _ { 3 } D 3 _ { t } to forecast doll prices in the year 2021. PtP _ { t } is the quarterly price of dolls,and D1t,D2tD 1 _ { t } , D 2 _ { t } and D3tD 3 _ { t } are dummy variables for quarters I,II,and III,respectively.  The manufacturer of Beanie Baby dolls used quarterly price data for 2012I - 2020IV (t = 1,...,36) and the regression equation  P _ { t } = a + b t + c _ { 1 } D 1 _ { t } + c _ { 2 } D 2 _ { t } + c _ { 3 } D 3 _ { t }  to forecast doll prices in the year 2021.  P _ { t }  is the quarterly price of dolls,and  D 1 _ { t } , D 2 _ { t }  and  D 3 _ { t }  are dummy variables for quarters I,II,and III,respectively.   At the 2 percent level of statistical significance,is there a statistically significant trend in the price of dolls? A) Yes,because 0.0022 < 0.02. B) No,because 0.0022 > 0.02. C) Yes,because 0.800 > 0.02. D) Yes,because 0.240 > 0.02. E) Yes,because 3.33 > 0.02. At the 2 percent level of statistical significance,is there a statistically significant trend in the price of dolls?


A) Yes,because 0.0022 < 0.02.
B) No,because 0.0022 > 0.02.
C) Yes,because 0.800 > 0.02.
D) Yes,because 0.240 > 0.02.
E) Yes,because 3.33 > 0.02.

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