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, these estimates indicate that the second quarter change in sales is

A. 24.5 units higher in the second quarter than in the other three quarters.
B. 1.86 units higher in the second quarter than in the other three quarters.
C. 2.00 units higher in the second quarter than in the other three quarters.
D. 22.5 units higher in the second quarter than in the other three quarters.


Answer: C

Economics

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