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A simple time-series model is estimated where wodget demand=100+3.4 Q=100+3.4t, where t is the year beginning in 2001 (t = 1 in 2001, t =
A simple time-series model is estimated where wodget demand=100+3.4
Q=100+3.4t, where t is the year beginning in 2001 (t = 1 in 2001, t = 2 in 2002, etc.); however, the coefficient for t is statistically insignificant. You would conclude that
Select one:
a.wodget demand falls over time, since the insignificant t coefficient means you reverse the sign.
b.wodget demand is independent of time; i.e., doesn't change from year-to-year.
c.wodget demand predictably increases year-after-year.
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