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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 64

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.   In any given year price tends to vary from quarter to quarter as follows: A) P<sub>I</sub> > P<sub>II</sub> > P<sub>III</sub> > P<sub>IV</sub> B) P<sub>I</sub> > P<sub>IV</sub> > P<sub>III</sub> > P<sub>II</sub> C) P<sub>II</sub> > P<sub>III</sub> > P<sub>IV</sub> > P<sub>I</sub> D) P<sub>III</sub> > P<sub>I</sub> > P<sub>II</sub> > P<sub>IV</sub> E) P<sub>IV</sub> > P<sub>III</sub> > P<sub>II</sub> > P<sub>I</sub> In any given year price tends to vary from quarter to quarter as follows:


A) PI > PII > PIII > PIV
B) PI > PIV > PIII > PII
C) PII > PIII > PIV > PI
D) PIII > PI > PII > PIV
E) PIV > PIII > PII > PI

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