(3) Business at Terry's Tie Shop can be viewed as falling into three distinct seasons: (1) Christmas (November-December); (2) Father's Day (late May - mid-June); and (3) all other times. Average weekly sales (in $'s) during each of these three seasons during the past four years has been as follows:

Season Year 1 Year 2 Year 3 Year 4

1 1856 1995 2241 2280

2 2012 1850 1430 2408

3 1716 1072 1105 1560

Estimate beta coefficients and the intercept of the following forecasting model with seasonality.

Sales_t = b0 + b1*S1 + b2*S2

where S1 and S2 represent dummy variables for season 1 and season 2, respectively.

What is the forecast for year 5 season 3?

(a) 1363.25

(b) 2093

(c ) -729.75

(d) 729.75