A Consulting Firm Estimates the Following Quarterly Sales Forecasting Model

question 34

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 third quarter?

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

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Definitions:

Oil Well

A drilling operation that extracts petroleum from the ground.

Depletion Rate

The rate at which natural resources are consumed or used, often applied in accounting to allocate the cost of a natural resource over its useful life.

Residual Value

The estimated salvage value of an asset at the end of its useful life, important for depreciation calculations.

Oil Well

A drilling operation established for the extraction of oil from the earth, constituting a significant part of the oil and gas industry.