Question: Regression analysis was used to estimate the following seasonal forecasting equation:

S _t = 124 + 18 D ₁ - 46 D ₂ - 28 D ₃ + 2.5 t

D ₁ is a dummy variable that is equal to one in the first quarter and zero otherwise; D ₂ is a dummy variable that is equal to one in the second quarter and zero otherwise; and D ₃ is a dummy variable that is equal to one in the third quarter and zero otherwise. Forecast the level of sales in the fourth quarter of time period ten.

1. 149
2. 180
3. 205
4. None of the above is correct.

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