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. In any given year, quarterly sales tend to vary as follows:

A. QI > QII > QIV > QIII
B. QIII > QIV > QII > QI
C. QII > QIII > QIV > QI
D. QIII > QII > QI > QIV
E. QI > QII > QIII > QIV


Answer: D

Economics

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