A forecaster used the regression equationQt = a + bt + c1D1 + c2D2 + c3D3and quarterly sales data for 1996 I - 2013 IV (t = 1, ..., 64) for an appliance manufacturer to obtain the results shown below. Q is quarterly sales, and D1, D2 and D3 are dummy variables for quarters I, II, and III. What is the estimated intercept of the trend line in the second quarter?

A. 25
B. 55
C. 26.6
D. 65
E. none of the above


Answer: B

Economics

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