A financial analyst would like to determine whether the return on Fidelity€™s Magellan mutual fund varies depending on the quarter; that is, if there is a seasonal component describing return. He collects 10 years of quarterly return data. A portion is shown in the accompanying table; the entire data set, labeled Magellan_dummy, can be found on the text website.

a. Estimate y = β0 + β1d1 + β2d2 + β3d3 + where y is Magellan€™s quarterly return, d1 is a dummy variable that equals 1 if quarter 1 and 0 otherwise, d2 is a dummy variable that equals 1 if quarter 2 and 0 otherwise, and d3 is a dummy variable that equals 1 if quarter 3 and 0 otherwise.
b. At the 10% significance level, can we conclude that Magellan€™s stock return varies by season?Explain.

Year Quarter Return d 2000 2000 d2 4.85 0 3.96 2009 4.06 0