Refer to the Following:
a Consulting Firm Estimates the Following $Q _ { t } = a + b t + c D$

question 52

Multiple Choice

Refer to the following:
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 2003I-2013III (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:
$\begin{array}{rllll}\text { DEPENDENT VARIABLE: } & \text { QT } & \text { R-SQUARE } & \text { F-RATIO } & \text { P-VALUE ONF } \\\text { OBSERVATIONS: } & 43 & 0.8644 & 127.5 & 0.0001\\\\\text { VARIABLE } & \text { PARAMETER } & \text { STANDARD } & \\&\text { ESTIMATE } & \text { ERROR } & \text { T-RATIO } & \text { P-VALUE } \\\text { INTERCEPT } & 22.5 & 9.32 & 2.41 & 0.0201 \\\text { T } & 1.86 & 0.55 & 3.38 & 0.0016 \\\text { D } & 2.0 & 0.71 & 2.82 & 0.0075\end{array}$
-What is the estimated intercept of the trend line in the second quarter?

• A) 22.50
• B) 24.50
• C) 24.36
• D) 2.00
• E) none of the above

---

Definitions:

Gross Motor Skill

Physical abilities involving large muscle movements such as crawling, walking, and jumping.

Mathematical Calculations

The process of using mathematical methods and algorithms to solve problems, compute figures, and analyze data.

Shoelaces

A pair of strings or cords used for fastening shoes, typically passed through eyelets or hooks on either side of the shoe opening.

Motor Skills

The abilities required to control and coordinate muscle movements for performing tasks.