14. Exhibit 11 shows the quarterly sales of Cisco Systems from 3Q 2001 to 2Q 2019.

A. Describe the salient features of the quarterly sales series.
B. Describe the procedures we should use to determine whether the AR(1)
specification is correct.
C. Assuming the model is correctly specified, what is the long-run change in the log of sales toward which the series will tend to converge?

Transcribed Image Text:

EXHIBIT 11 Quarterly Sales at Cisco Millions of Dollars 7000 6000 5000 4000 3000 2000 1000 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 Year