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Consider the following linear trend models estimated from 10 years of quarterly data with and without seasonal dummy variables d1, d2, and d3. Here,
Consider the following linear trend models estimated from 10 years of quarterly data with and without seasonal dummy variables d1, d2, and d3. Here, d = 1 for quarter 1, 0 otherwise; other dummy variables are defined similarly. Model 1: 37.00 + 0.46t Model 2: 37.00 +0.66t 0.47d1 -0.63d2 -0.10d3 a. Use each model to make a forecast for y for the first and the fourth quarters of the 11th year.
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