2} Pin investigator estitnated the parameters in the equation 111'": :o + JSlnjiT + u by Ordinary Least Squares using 52 quarterly observations for 19?}. to 1984 inclusiye. This resulted in a residual sum of squares (RES) of DES. i} When 3 dummy variables representing The first 3 quarters of the year were added to the equation the RSS fell to U56. Using an Ftest, test for the presence of seasonality stating what assumptions are being made concerning the forth of the seasonality. [2 3%] ii) When 3 lagged values of In}: were added to the original equation (without the dummy variables}, without reducing the number of observations used