A local store developed a multiplicative time-series model to forecast its revenues in future quarters, using quarterly data on
1 answer:
Answer:
The quarterly growth rate in revenues is significantly different from 1.2%.
b. 2,666,858
Step-by-step explanation:
Given that:
The regression equation can be represented as :
In testing the significance of the coefficient of X in the regression equation (0.012) which has a p-value of 0.02.
The null and alternative hypothesis can be stated as;
The quarterly growth rate in revenues is not significantly different from 1.2%.
The quarterly growth rate in revenues is significantly different from 1.2%.
The decision rule is to reject the null hypothesis if the p-value is less than 0.05.
From above ; the p-value = 0.02 which is less than 0.05.
Conclusion:
Thus; we reject the null hypothesis and accept the alternative hypothesis. i.e
The quarterly growth rate in revenues is significantly different from 1.2%.
b.
Since ; X = 27
Thus ;
2666858.665
2,666,858
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