What do these values imply?

Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following e Show more Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following equation was estimated using quarterly data for the period 2006-2013 (the time variable goes from 1 to 32). The variables D1 D2 and D3 are respectively dummy variables for the first second and third quarters (e.g. D is equal to 1 in the first quarter and 0 otherwise). Q1= a+bt+c1D1 +c2 D2 + c3 D3 The results of the estimation are presented here: Dependent Variable: QT R-SQUARE F-RATIO P-VALUE ON F OBSERVATION: 32 0.9817 361.133 0.0001 PARAMETER STANDARD VARIABLE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 51.234 7.16 7.15 0.0001 T 31.127 0.524 5.97 0.0001 D1 -11.716 2.717 -4.31 0.0002 D2 -.1.424 0.636 -2.24 0.0985 D3 -17.367 2.112 -8.22 0.0001 A. At the 5 percent level of significance perform t- and F-tests to check for statistical significance of the coefficients and the equation. Discuss also the significance for the coefficients and equation in terms of p-values. For a level with 27 (32-5) t = 2.052 a_t=7.15>2.052 statistically significant at 5%. b:t5.97>2.052statistically significant at 5%. C1 / t/ = /-4.31/> 2.052statistically significant at 5%. B. Calculate the intercept in each of the four quarters. What do these values imply? C. Use this estimated equation to forecast sales in the four quarters of 2014. Show less Posted in Uncategorized