Based on Quarterly Data Collected Over the Last Four Years

Multiple Choice

Based on quarterly data collected over the last four years, the following regression equation was found to forecast the quarterly demand for the number of new copies of an economics textbook: _t = 3,305 - 665Qtr1 - 1,335Qtr2 + 305Qtr3, where Qtr1, Qtr2, and Qtr3 are dummy variables corresponding to Quarters 1, 2, and 3. Which of the following is not true?

A) The demand in Quarter 1 is on average 665 copies lower than in Quarter 4.
B) The demand in Quarter 3 is on average 305 copies higher than in Quarter 4.
C) The demand in Quarter 2 is on average 1,335 copies higher than in Quarter 4.
D) The demand in Quarter 4 is on average 3,305 copies.