A consulting firm estimates the following quarterly sales forecasting model:

Qt = a + bt +cD

The equation is estimated using quarterly data from 2005 I -2015 III (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:

DEPENDENT VARIABLE: QT R-SQUARE F-RATIO P-VALUE ON F OBSERVATIONS: 43 0.8644 127.5 0.0001 PARAMETER STANDARD VARIABLE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 22.5 9.32 2.41 0.0201 T 1.86 0.55 3.38 0.0016 D 2.0 0.71 2.82 0.0075