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

question 12

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: Using the estimated trend line above,what is the predicted level of sales in 2021I ?

• A)110.06
• B)106.20
• C)104.34
• D)102.2
• E)none of the above

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