SCENARIO 16-14 A contractor developed a multiplicative time-series model to forecast the number of contracts in future quarters, using quarterly data on number of contracts during the 3-year period from 2011 to 2013.The following is the resulting regression equation: where is the estimated number of contracts in a quarter. X is the coded quarterly value with X = 0 in the first quarter of 2011. is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. Q is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise. is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Scenario 16-14, the best interpretation of the coefficient of Q (0.617)in the regression equation is:
A)the number of contracts in the third quarter of a year is approximately 62% higher than the average over all 4 quarters.
B)the number of contracts in the third quarter of a year is approximately 62% higher than it would be during the fourth quarter.
C)the number of contracts in the third quarter of a year is approximately 314% higher than the average over all 4 quarters.
D)the number of contracts in the third quarter of a year is approximately 314% higher than it would be during the fourth quarter.

Question

SCENARIO 16-14 A contractor developed a multiplicative time-series model to forecast the number of contracts in future quarters, using quarterly data on number of contracts during the 3-year period from 2011 to 2013.The following is the resulting regression equation:  where  is the estimated number of contracts in a quarter. X is the coded quarterly value with X = 0 in the first quarter of 2011.  is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. Q  is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.  is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Scenario 16-14, the best interpretation of the coefficient of Q  (0.617)in the regression equation is:
A)the number of contracts in the third quarter of a year is approximately 62% higher than the average over all 4 quarters. 
B)the number of contracts in the third quarter of a year is approximately 62% higher than it would be during the fourth quarter. 
C)the number of contracts in the third quarter of a year is approximately 314% higher than the average over all 4 quarters. 
D)the number of contracts in the third quarter of a year is approximately 314% higher than it would be during the fourth quarter.

Quizplus · Accepted Answer

The Answer of SCENARIO 16-14 A contractor developed a multiplicative time-series model to forecast the number of contracts in future quarters, using quarterly data on number of contracts during the 3-year period from 2011 to 2013.The following is the resulting regression equation:  where  is the estimated number of contracts in a quarter. X is the coded quarterly value with X = 0 in the first quarter of 2011.  is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise. Q  is a dummy variable equal to 1 in the second quarter of a year and 0 otherwise.  is a dummy variable equal to 1 in the third quarter of a year and 0 otherwise.
-Referring to Scenario 16-14, the best interpretation of the coefficient of Q  (0.617)in the regression equation is:
A)the number of contracts in the third quarter of a year is approximately 62% higher than the average over all 4 quarters. 
B)the number of contracts in the third quarter of a year is approximately 62% higher than it would be during the fourth quarter. 
C)the number of contracts in the third quarter of a year is approximately 314% higher than the average over all 4 quarters. 
D)the number of contracts in the third quarter of a year is approximately 314% higher than it would be during the fourth quarter.

SCENARIO 16-14 a Contractor Developed a Multiplicative Time-Series Model to Forecast