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.  Consider the following model:

Salest=B1+B2D2t+B3D3t+B4D4t+ut

where   D2t

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

                D3t

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

                D4t

=1 if in the 4^th 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.