A Forecaster Used the Regression Equation $Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$

question 44

Multiple Choice

A forecaster used the regression equation $Q _ { t } = a + b t + c _ { 1 } D _ { 1 } + c _ { 2 } D _ { 2 } + c _ { 3 } D _ { 3 }$ and quarterly sales data for 2004I-2021IV (t = 1,...,64) for an appliance manufacturer to obtain the results shown below.Q is quarterly sales,and $D _ { 1 } , D _ { 2 }$ and $D _ { 3 }$ are dummy variables for quarters I,II,and III. In any given year,quarterly sales tend to vary as follows:

• A)Q_I > Q_II > Q_III > Q_IV
• B)Q_I > Q_II > Q_IV > Q_III
• C)Q_II > Q_III > Q_IV > Q_I
• D)Q_III > Q_II > Q_I > Q_IV
• E)Q_III > Q_IV > Q_II > Q_I

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