For a given sample size, if a is reduced from 0.04 to 0.01, what will happen to ?
Choose the correct answer below.
O A. B will increase.
O B. B will increase for large sample sizes only.
O C. B will remain the same.
O D. B will decrease.
O E. B will decrease for small sample sizes only.
O F. B will decrease for large sample sizes only.
O G. B will increase for small sample sizes only.
An quarterly time series on net sales in billions of dollars) contains 22 values,from quarter 1 of 2012 t=1 to quarter 2 of 2017 t=22).The fitted trendline for the data has the following equation:
T,=1.1+1.4t
Assuming a multiplicative model, the seasonal indexes are calculated as below:
quarter
quarter
3rd quarter
4th quarter S4 0.977
S1 0.948
S 1.007
S3 1.069
Please answer the questions (a) and (b) below.
(a) Intepret the value of the second quarter seasonal index S2.Select the correct answer below.
O A. The sales for the 2nd quarter are 7% below the trendline projection, on average.
O B. The sales for the 2nd quarter are 0.7% above the trendline projection, on average.
O C. On average, the sales for the 2nd quarter are 0.7% of the trendline projection. O D. On average, the sales for the 2nd quarter are 7% above the trendline projection.
(b) What is the forecast sales for the first quarter of 2018
$billion (Round your answer to two decimal places.)