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:
Using the estimated trend line above, what is the predicted level of sales in 2016 I ?
A. 106.20
B. 102.2
C. 104.34
D. 110.06
E. none of the above
Answer: A
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