5. The following regression results relate to a study of computer sales (in dollars) as a function of income (1) and season (Quarter 1 (Q1), Quarter 2 (Q2), and Quarter 3 (Q3)). Variable Intercept Income Q1 Q2 Q3 Income Income in dollars Q1=1 for quarter 1 and 0 otherwise Q2=1 for quarter 2 and 0 otherwise Q3=1 for quarter 2 and 0 otherwise Coefficient 418 0.82 -1.03 -12.65 -4.82 Standard error 120 0.34 0.60 2.58 1.23 (a) What is the interpretation of the coefficient on income? What is the interpretation of the coefficient on Q1? (b) Should we have included a dummy variable for quarter 4 in the regression? Why or why not? (c) Find an estimate for computer sales during quarter 1 when income was $20,000.

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