A consulting firm estimates the following quarterly sales forecasting model:Qt = a + bt +cDThe 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:
Give the above, at the 1 percent level of significance, is there a statistically significant trend in sales?
A. No, since 1.02 < 2.704
B. Yes, since 1.86 > 0.55
C. Yes, since 3.38 > 2.704
D. No, since 1.86 < 2.704
E. No, since 0.55 < 1.86
Answer: C
Economics
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