Consider a firm subject to quarter-to-quarter variation in its sales. Suppose that the following equation was estimated using quarterly data for the period 2011?2018 (the time variable goes from 1 to 32). The variables D₁, D₂, and D₃ are, respectively, dummy variables for the first, second, and third quarters (e.g., D₁ is equal to 1 in the first quarter and 0 otherwise).

Q_t = a + bt + c₁D₁ + c₂D₂ + c₃D₃

The results of the estimation are presented here:

a. At the 5 percent level of significance, perform t- and F-tests to check for statistical significance of the coefficients and the equation. Discuss also the significance of the coefficients and equation in terms of p-values.b. Calculate the intercept in each of the four quarters. What do these values imply?c. Use this estimated equation to forecast sales in the four quarters of 2019.

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DEPENDENT VARIABLE: QT R-SQUARE F-RATIO P-VALUE ONF OBSERVATIONS: 32 0.9817 361.133 0.0001 PARAMETER STANDARD VARIABLE ESTIMATE ERROR T-RATIO P-VALUE INTERCEPT 51.234 7.16 7.15 0.0001 3.127 0.524 5.97 0.0001 D1 -11.716 2.717 -4.31 0.0002 D2 -1.424 0.636 -2.24 0.0985 D3 -17.367 2.112 -8.22 0.0001