1. Determine whether there is a significant relationship between the number of new clients seen and the number of people on food stamps and/or the business activity index. Don't forget the possibility of data transformations.
2. Develop a regression equation and use it to forecast the number of new clients for the first three months of 1993.
3. Compare the results of your forecast with the actual observations for the first three months of 1993.
4. Would the business activity index be a good predictor of the number of new clients?
5. The data consist of a time series. Does this mean the independence assumption has been violated?
6. Assume that you developed a good regression equation. Would you be able to use this equation to forecast for the rest of 1993? Explain your answer.

The Consumer Credit Counseling (CCC) operation was described in Case 1-2.
The executive director, Marv Harnishfeger, concluded that the most important variable that CCC needed to forecast was the number of new clients that would be seen for the rest of 1993. Marv provided Dorothy Mercer with monthly data for the number of new clients seen by CCC for the period from January 1985 through March 1993.

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n h Mar Ap Mey J Jt AE Sp Oe No Dr 1985 110 108 105 104 104 102 103 101 102 102 99 99 1986 102 105 106 107 105 106 105 105 103 105 103 101 1987 108 105 105 108 104 108 105 105 103 105 104 104 1988 104 109 109 103 103 104 99 102 101 10 102 102 1989 107 106 109 105 104 103 103 106 105 106 107 99 990 103 106 10 108 110 105 105 106 107 107 112 991 114 116 118 119 18 120 120 121 119 121 119 120 1992 122 118 123 118 118 120 122 120 122 123 124 122 1993 125 125 130