Consider the following to answer the question(s) below:
Quarterly sales data (in $10,000) for a small company specializing in green cleaning products are shown in the time series graph below. A seasonal regression model was fit to these data and the results are shown below.
-The regression coefficients in the seasonal regression model indicate that
A) Sales are, on average, lower in the first, second and third quarters compared with the fourth quarter.
B) Sales are, on average, lowest in the fourth quarter.
C) Sales are, on average, higher in the first, second and third quarters compared with the fourth quarter.
D) Sales are, on average, lowest in the first quarter.
E) Sales are, on average, lowest in the second quarter.

Question

Consider the following to answer the question(s) below:
Quarterly sales data (in $10,000) for a small company specializing in green cleaning products are shown in the time series graph below.  A seasonal regression model was fit to these data and the results are shown below. 
-The regression coefficients in the seasonal regression model indicate that
A) Sales are, on average, lower in the first, second and third quarters compared with the fourth quarter. 
B) Sales are, on average, lowest in the fourth quarter. 
C) Sales are, on average, higher in the first, second and third quarters compared with the fourth quarter. 
D) Sales are, on average, lowest in the first quarter. 
E) Sales are, on average, lowest in the second quarter.

Quizplus · Accepted Answer

The regression coefficients in a seasonal model typically compare each quarter to a baseline, often the fourth quarter. If the coefficients for the first, second, and third quarters are negative, it indicates that sales are lower in these quarters compared to the fourth quarter.

Consider the Following to Answer the Question(s) Below