The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively.
In any given year price tends to vary from quarter to quarter as follows:
A. PI > PII > PIII > PIV
B. PII > PIII > PIV > PI
C. PIII > PI > PII > PIV
D. PI > PIV > PIII > PII
E. PIV > PIII > PII > PI
Answer: E
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