Emma Uses a Linear Model to Forecast Quarterly Same-Store Sales

Multiple Choice

Emma uses a linear model to forecast quarterly same-store sales at the local Garden Center. The results of her multiple regression is:Sales = 2,800 + 200. T -350 .D Where T goes from 1 to 16 for each quarter of the year from the first quarter of 2006 ('06I) through the fourth quarter of 2009 ('09 IV) . D is a dummy variable which is 1 if sales are in the cold and dreary first quarter, and zero otherwise, because the months of January, February, and March generate few sales at the Garden Center. Use this model to estimate sales in a store for the first quarter of 2010 in the 17^th month; that is: {2010 I}. Emma's forecast should be:

A) 5,950
B) 6,200
C) 6,350
D) 6,000
E) 5,850