An analyst uses quarterly data to study the relationship between retail sales (y, in $ millions), gross national product (x, in $ billions), and a dummy variable d that equals 1 if the sales are for the 4th quarter 0 otherwise He estimates the model y Icirc sup2 0 Icirc sup2 1x Icirc sup2 2d Relevant regression results are shown in the accompanying table Interpret the dummy variable d Is it significant at the 5 level Intercept 186553 3 55 0 112605 8 Coefficients Standard Error tStat p value 3 31 0 0021 12 08 0 0000 0 96 0 3424 56421 1 4 6 117053 0

Question: An analyst uses quarterly data to study the relationship between retail sales (y, in $ millions), gross national product (x, in $ billions), and a

An analyst uses quarterly data to study the relationship between retail sales (y, in $ millions), gross national product (x, in $ billions), and a dummy variable d that equals 1 if the sales are for the 4th quarter; 0 otherwise. He estimates the model y = Î²0 + Î²1x + Î²2d + . Relevant regression results are shown in the accompanying table.

Interpret the dummy variable d. Is it significant at the 5%level?

Intercept 186553.3 55.0 112605.8 Coefficients Standard Error tStat p-value 3.31 0.0021 12.08 0.0000 0.96 0.3424 56421.1 4.6 117053.0

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