Based on Quarterly Data Collected Over the Last Four Years,the

question 47

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: = 3,305 - 665Qtr1 - 1,335Qtr2 + 305Qtr3,where Qtr1,Qtr2,and Qtr3 are dummy variables corresponding to Quarters 1,2,and 3. The demand forecast for Quarter 2 of the next year is _______.

• A) 2,640
• B) 1,970
• C) 3,610
• D) 3,305

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