SCENARIO 16-9
Given below are EXCEL outputs for various estimated autoregressive models for a company's real operating revenues (in billions of dollars)from 1989 to 2012.From the data,you also know that the real operating revenues for 2010,2011,and 2012 are 11.7909,11.7757 and 11.5537,respectively.
First-Order Autoregressive Model:
Second-Order Autoregressive Model:

-Referring to Scenario 16-9,if one decides to use the Third-Order Autoregressive model ,what will the predicted real operating revenue for the company be in 2015?
A)$11.59 billion
B)$11.68 billion
C)$11.84 billion
D)$12.47 billion

Question

SCENARIO 16-9
Given below are EXCEL outputs for various estimated autoregressive models for a company's real operating revenues (in billions of dollars)from 1989 to 2012.From the data,you also know that the real operating revenues for 2010,2011,and 2012 are 11.7909,11.7757 and 11.5537,respectively.
First-Order Autoregressive Model:
  Second-Order Autoregressive Model:
  
-Referring to Scenario 16-9,if one decides to use the Third-Order Autoregressive model ,what will the predicted real operating revenue for the company be in 2015?
A)$11.59 billion 
B)$11.68 billion 
C)$11.84 billion 
D)$12.47 billion

Quizplus · Accepted Answer

Based on the data provided, the Third-Order Autoregressive Model has the highest R-squared value and lower values for AIC and SC, indicating a better fit. Using this model, the predicted real operating revenue for the company in 2015 would be $11.84 billion.

SCENARIO 16-9 Given Below Are EXCEL Outputs for Various Estimated Autoregressive Models