Question #67

Reading: Reading 2 Time-Series Analysis

PDF File: Reading 2 Time-Series Analysis.pdf

Page: 32

Status: Unattempted

Part of Context Group: Q66-67
Shared Context
- With respect to the possible problems of autocorrelation and nonstationarity, using the log- linear transformation appears to have: A) not improved the results for either possible problems. B) improved the results for nonstationarity but not autocorrelation. C) improved the results for autocorrelation but not nonstationarity.
Question
Using the log-linear trend model, the forecast of sales for Very Vegan for the first out-of- sample period is:
Answer Choices:
A. $109.4 million
B. $117.0 million
Explanation
The forecast is e2.9803 + (13 × 0.1371) = 117.01.
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