Sajjad1994 wrote:
Project IR Butler 2019-20 - Get one IR Question EverydayQuestion # 189, Date : 08-Apr-2020
This post is a part of Project IR Butler 2019-20.
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1q2w.jpg
This is a Time VS QoQ Rate of Growth chart for Facebook between June 2009 and April 2012 - just before its IPO in May 2012. The dotted line shows actual data while the smooth line shows an estimated regression of those data points.
Choose the appropriate drop down that best fills in the sentence with accurate information about the graph.1) The quarter over quarter growth rate took______________months to fall from the 10%-15% range down to the 5%-10% range.A. 4 Month
B. 8 Month
C. 12 Month
2) The graph shows there tends to be a seasonal effect on the decline of Facebook's rate of growth during the time period shown.______________.A. True
B. False
C. Cannot Tell
- First question has been explained and an easy one to figure out.
- Second question's answer is true(A) as one can observe that seasonal means the figures(values) must show a pattern of crests and troughs. Here crests and troughs are only leading down(de-growing) and that's why such a curve(regression).
- In other words are lowers lows and lower highs wherein lower highs are higher than the lower lows and thus the seasonality is shown.
- OR in other words, roughly every alternate point in the graph is on the same side of the regression curve. Hence it is TRUE that there tends to be a seasonal effect on the decline of Facebook's rate of growth during the time period.
2. Answer A
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