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Homework answers / question archive / Problem Set 5 Data in Table 6-12 give non-seasonally adjusted quarterly data on retail sales of hobby, toy, and game stores

Problem Set 5 Data in Table 6-12 give non-seasonally adjusted quarterly data on retail sales of hobby, toy, and game stores

Statistics

Problem Set 5

Data in Table 6-12 give non-seasonally adjusted quarterly data on retail sales of hobby, toy, and game stores.  Consider the following model:

Salest=B1+B2D2t+B3D3t+B4D4t+ut

 

where   D2t

=1 if in the 2nd quarter, =0 otherwise

 

                D3t

=1 if in the 3rd quarter, =0 otherwise               

 

                D4t

=1 if in the 4th quarter, =0 otherwise               

 

Use Stata to answer the following questions:

  1. Estimate the model above.
  2. What is the interpretation of the coefficients?
  3. Give a logical reason for why the results are this way.

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