Consider the following regression equation utilizing dummy variables for explaining quarterly SALES in terms of the quarter of their occurrence:

SALESₜ = β₀ + β₂D₂,t + β₃D₃,t + β₄D₄,t + eₜ

where:

SALES = a quarterly observation of EPS

D₂,t = 1 if period t is the second quarter, D₂,t = 0 otherwise

D₃,t = 1 if period t is the third quarter, D₃,t = 0 otherwise

D₄,t = 1 if period t is the fourth quarter, D₄,t = 0 otherwise

The intercept term β₀ represents the average value of sales for the: