A Consulting Firm Estimates the Following Quarterly Sales Forecasting Model $Q _ { t } = a + b t + c D$

question 65

Multiple Choice

A consulting firm estimates the following quarterly sales forecasting model: $Q _ { t } = a + b t + c D$ The equation is estimated using quarterly data from 20010I-2020III (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 0.0016 < 0.01.
• B)No,because 0.0016 < 0.01.
• C)Yes,because 0.55 > 0.01.
• D)Yes,because 1.86 > 0.01.
• E)both c and d

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