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Consider the following time series. Need answers to a, b, & c Consider the following time series: Quarter Year 1 Year 2 Year 3 1

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Consider the following time series: Quarter Year 1 Year 2 Year 3 1 69 66 60 N 45 37 47 55 57 50 83 86 77 (a) Choose a time series plot. 100 80 60 yt 40 20 2 5 10 11 12 6 7 8 Period(t) (ii) 100 80 60 yt 40 20 (ii) 100 80 60 yt 40 20 0 + 1 N + 2 3 4 5 6 7 8 9 Period(t) 10 11 12 100 80 60 yt 40 20 0 1 N 3 4 . 6 0) 10 11 12 8 Period (t) (iv) 100 80 60 yt 40 20 (lv) 100 80 60 yt 40 20 0 - 2 3 4 5 6 8 9 10 11 12 Period (t) - Select your answer - What type of pattern exists in the data? Is there an indication of a seasonal pattern? - Select your answer - (b) Use a multiple linear regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data: Qeri = 1 quarter 1,0 otherwise; Qtr2 = 1 If quarter 2,0 otherwise; Qtr3 = 1 If quarter 3,0 otherwise. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank (Example: -300). 9 = Qur2 + Otr3 (c) Compute the quarterly forecasts for next year. Year Quarter Ft Qtrl + 4 1 4 2 4 3 4 4

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