Based on Quarterly Data Collected Over the Last Five Years

Multiple Choice

Based on quarterly data collected over the last five years, the following regression equation was found to forecast the quarterly demand for the number of new copies of a business statistics textbook: _t = 2,298 - 6,635Qtr1 - 1,446Qtr2 + 303Qtr3 + 26t, where Qtr1, Qtr2, and Qtr3 are dummy variables corresponding to Quarters 1, 2, and 3, and t = time period starting with t = 1. For a given year, the demand in Quarter 3 is on average ________.

A) 1,749 copies lower than in Quarter 2
B) 303 copies higher than in Quarter 2
C) 1,749 copies higher than in Quarter 2
D) 1,446 copies higher than in Quarter 2