A Consulting Firm Estimates the Following Quarterly Sales Forecasting Model

question 23

Multiple Choice

A consulting firm estimates the following quarterly sales forecasting model: The equation is estimated using quarterly data from 2005I-2015III 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:
Given the above,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

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Definitions:

Capital Surplus

The amount by which a company's total capital exceeds the par value of its issued share capital.

Paid-in Capital

Funds raised by a company through the sale of common or preferred stock.

Preferred Stock

A type of stock that provides a fixed dividend before any dividends are paid to common stockholders and typically has no voting rights.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.