Question: Consider the following time series. (a) Construct a time series plot. What type of pattern exists in the data? Is there an indication of a

Consider the following time series. (a) Construct a time series plot. What type of pattern exists in the data? Is there an indication of a seasonal pattern? The time series plot shows a horizontal pattern with no seasonal pattern present. The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data. The time series plot shows a trend pattern, but there is also a seasonal pattern in the data. The time series plot shows a trend pattern with no seasonal pattern present. (b) Use a multiple linear regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. x1=1 if quarter 1,0 otherwise; x2=1 if quarter 2,0 otherwise; x3=1 if quarter 3,0 otherwise. y^= (c) Compute the quarterly forecasts for the next year. quarter 1 forecast quarter 2 forecast quarter 3 forecast quarter 4 forecast
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
