1.7

South Shore Construction builds permanent dades and seawalls along the southern shore of Long Island, New York. Although the firm has been in business only five years, revenue has increased from $301,000 n the first year of operation to $1,093,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars. Year! Quarter Year 2 Year 3 Year 4 Years 169 14 28 B4 91 1 2 90 130 160 194 288 147 3 181 240 322 377 4 2 34 50 75 189 a. Which of the following is the correct time series plot? 1 TimeSeriesValue 450 1400 1350 100 250 M 200 150 100 50 70 10 11 12 13 14 15 16 17 18 19 20 Time Period _50 Time Period (t) 2. TimeSeries Value -450 1400 350 300 250 200 1150 100 150 3 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Time Periodt 1:50 Time series plot 2 What type of pattern exists in the data? There appears to be a seasonal pattern in the data and perhaps awardiner trend ts. Use the following dummy variables to develop an estimated regreton equation to account for any seasonal effects in the data: Qtr11 Quarter 1, otherwise Qur2 - 1 Quarter 2,0 otherwise Qu3 - 1 Quarter 3.0 otherwise, Bound your awes to whole number Revenue Qurl + Qu2+ Qur3 Compote the quarterly forecast for next year Quarter 1 forecast Quarter 2 forecast Quarter forecast Quarter 4 forecast e Period to refer to the observation in quarter of year 1. Perlod 2 to refer to the observation in quarter of year 1 and Period -20 ruter to the observation in quarter 4 of year 3. ung the dummy variables defined in part (b) and Period, develop an estimated regresscon equation to account for seasonal effects and any linear trend in the time wees, Based upon the seasonal effects in the data and linear trend, compute the quarterly forecasts for next year. Hound your answers to while number ter negative values negative number Threations Revenue Qur Qu2+ Period The quarterly forecast for next year areas qu3 Duarter force Quarter 2 forecast