A consulting firm estimates the following quarterly sales forecasting model:Qt = a + bt +cDThe equation is estimated using quarterly data from 2005 I - 2015 III (t = 1,..., 43). The variable D is a dummy variable for the second quarter where: D = 1 in the second quarter, and 0 otherwise. The results of the estimation are:
Given the above, what is the estimated intercept of the trend line in the second quarter?
A. 24.50
B. 22.50
C. 2.00
D. 24.36
E. none of the above
Answer: A
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