Reference no: EM132922108
Suppose we want to estimate how revenue, measured in dollars, changes both over time andquarterlyfive years2(d), within each year. You estimate the following seasonal dummy variable model using data for . Assume all the variables are significant at the 5% level. Revenue is measured in dollars, t is a standard time variable, and QQ3(d), and Q4(d) are quarterly dummy variables.
Based on the estimated model above, which of the following would be the TRUE?
Revenue in quarter 2 is $1,750 higher than the average revenue, on average and all else constant.
As quarter 2 increases by 1 quarter, revenue increases by $1,750, on average and all else constant.
Revenue in quarter 3 is $1,800 higher than quarter 1, on average and all else constant.
Revenue in quarter 2 is always $1,750 higher than in quarter 1, all else constant.
Revenue in quarter 4 is $299 lower than in quarter 2, on average and all else constant.
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