A time series regression equation measuring the number of surfboards sold by a surfboard manufacturing company in Australia is given below: Y = 35 + 4Q1+0.5Q3 + 8Q4 + 3t with t in quarters and the first observation of the dataset is December 2015 and Q1 is the indicator variable for March, Q3 is the indicator variable for September and Q4 is the indicator variable for December. Which of the following statements is correct? There is a mistake with this regression model because all the coefficients of the indicator variables are positive. There is no indicator variable for the June quarter in this model because there is no seasonal effect in June due to winter in Australia. There is a mistake with this model because the indicator variable for the June quarter has been left out. There is no indicator variable for the June quarter because the model has an intercept and including the June quarter would result in perfect multicollinearity.

A time series regression equation measuring the number of surfboards sold by a surfboard manufacturing company in Australia is given below: Y = 35 + 4Q1+0.5Q3 + 8Q4 + 3t with t in quarters and the first observation of the dataset is December 2015 and Q1 is the indicator variable for March, Q3 is the indicator variable for September and Q4 is the indicator variable for December. Which of the following statements is correct? There is a mistake with this regression model because all the coefficients of the indicator variables are positive. There is no indicator variable for the June quarter in this model because there is no seasonal effect in June due to winter in Australia. There is a mistake with this model because the indicator variable for the June quarter has been left out. There is no indicator variable for the June quarter because the model has an intercept and including the June quarter would result in perfect multicollinearity.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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