Based on Quarterly Data Collected Over the Last Four Years

question 23

Multiple Choice

Based on quarterly data collected over the last four years, the following regression equation was found to forecast the quarterly demand for the number of new copies of an economics textbook: _t = 3,305 - 665Qtr1 - 1,335Qtr2 + 305Qtr3, where Qtr1, Qtr2, and Qtr3 are dummy variables corresponding to Quarters 1, 2, and 3. By what percent is the demand in Quarter 3 higher on average than the average quarterly demand?

• A) 25.29%
• B) 8.37%
• C) 31.63%
• D) 14.71%

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