Refer to the Following

Multiple Choice

refer to the following:
The manufacturer of Beanie Baby dolls used quarterly price data for 2002I - 2010IV (t = 1, ..., 36) and the regression equation


to forecast doll prices in the year 2011. P_t is the quarterly price of dolls, and D1_t , D2_t and D3_t are dummy variables for quarters I, II, and III, respectively.

-Using the estimated time-series regression, predicted price in the 2nd quarter of 2011 is

A) $48.40
B) $54.40
C) $40.40
D) $51.40
E) none of the above