It has been established in the lecture that December is the seasonal trough for this time series data. That is, December index values are smaller than other months of the year, with the trend having been accounted for. Which TWO of the following statements are FALSE?a.The analysis is false, as the seasonal effect from the month of December is largest amongst all twelve months, estimated at 103.81b. At the 5% significance level, only the seasonal components from May to October (six months inclusive) are statistically larger than that of December.c.At the 5% significance level, only the seasonal components from June to October (five months inclusive) are statistically larger than that of December.d.The seasonal effect from the month of December is included as part of the intercept in this regression model.
Question
It has been established in the lecture that December is the seasonal trough for this time series data. That is, December index values are smaller than other months of the year, with the trend having been accounted for. Which TWO of the following statements are FALSE?a.The analysis is false, as the seasonal effect from the month of December is largest amongst all twelve months, estimated at 103.81b. At the 5% significance level, only the seasonal components from May to October (six months inclusive) are statistically larger than that of December.c.At the 5% significance level, only the seasonal components from June to October (five months inclusive) are statistically larger than that of December.d.The seasonal effect from the month of December is included as part of the intercept in this regression model.
Solution
Without the specific data or the regression model, it's hard to definitively say which statements are false. However, based on the information given:
a. This statement could be false. If December is the seasonal trough, it means that it has the lowest values, not the largest. However, the value 103.81 could be a negative effect, in which case this statement might be true.
b. This statement could be true or false depending on the specific data. If the seasonal components from May to October are statistically larger than that of December, it would mean that these months have a greater effect on the time series data.
c. Similar to statement b, this could be true or false depending on the specific data. If the seasonal components from June to October are statistically larger than that of December, it would mean that these months have a greater effect on the time series data.
d. This statement is likely false. In a regression model, the intercept is the expected value of the dependent variable when all independent variables are zero. The seasonal effect from December would not be part of the intercept, but rather one of the independent variables.
So, based on the information given, statements a and d are likely false.
Similar Questions
Which of the following is NOT a valid time series decomposition? trend x seasonal + irregular trend x seasonal x irregular trend + irregular seasonal + calendar effects
Assume you collected a quarterly sales data (in millions of dollars) over a four-year period from the first quarter 2016 to the fourth quarter 2019, and computed the seasonal index for each quarter. If the (normalised) seasonal index for the third quarter is 0.96, then we can interpret it as follows. a. In the third quarter, sales are 4% below the annual average. b. There is a 96% difference in sales between the third quarter and the fourth quarter. c. In the third quarter, sales are 96% below the annual average. d. There is a 4% difference in sales between the first quarter and the third quarter.
Because the Earth is tilted on its rotational axis, both the Northern and Southern Hemispheres experience seasons. As the Earth revolves around the Sun, the angle at which sunlight hits each of these hemispheres changes.The Sun appears _______ in the sky and for a _______ period of time each day during summer than it does during winter. A. lower; shorter B. higher; longer C. higher; shorter D. lower; longer
Following is the sale record of a product in year 2020:Spring = 1,083 unitsSummer = 1,224 unitsFall = 948 unitsWinter = 591 unitsRequired: Determine Seasonality Index for Winter?
True or false: The tilt of the Earth on its axis accounts for seasonal temperature changes.True false question.
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.