Instruction 14-6
A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on its revenues during the four-year period from 2005 to 2009. The following is the resulting regression equation:
Where
is the coded quarterly value with in the first quarter of 2005 .
is a dummy variable equal to 1 in the first quarter of a year and 0 otherwise.
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 Instruction 14-6,the best interpretation of the constant 6.102 in the regression equation is:
A) The fitted value for the first quarter of 2005, after seasonal adjustment, is log10(6.102) .
B) The fitted value for the first quarter of 2005, after seasonal adjustment, is 106.102.
C) The fitted value for the first quarter of 2005, prior to seasonal adjustment, is log10(6.102) .
D) The fitted value for the first quarter of 2005, prior to seasonal adjustment, is 106.102.
Correct Answer:
Verified
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