Consider the model showing the quarterly profits-sales behavior in a company (profits and sales figures are in thousands of dollars).
, and Q4
indicate the second, third, and fourth quarters.
= 1 for second quarter and is 0 otherwise.
=1 for third quarter and is 0 otherwise.
= 1 for fourth quarter and is 0 otherwise.
All coefficients are statistically significant at the 5% level. What was the average level of profits in the third quarter?