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, at the 1 percent level of significance, is there a statistically significant trend in sales?

A. Yes, because 1.86 > 0.01.
B. Yes, because 0.55 > 0.01.
C. Yes, because 0.0016 < 0.01.
D. No, because 0.0016 < 0.01.
E. both c and d


Answer: C

Economics

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