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Consider the following time series. Quarter Year I Year 2 Year 3 2 37 HO 71 (a) Construct a time series plot. Time Series Value
Consider the following time series. Quarter Year I Year 2 Year 3 2 37 HO 71 (a) Construct a time series plot. Time Series Value Time Series Value Time Series Value Time Series Value 20 20 10 10 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Year 1 Year 2 Year S Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year Quarter Year Quarter Year/ Quarter DO Year Quarter What type of pattern exists in the data? The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data. O The time series plot shows a horizontal pattern with no seasonal pattern present. O The time series plot shows a trend pattern with no seasonal pattern present. The time series plot shows a trand pattern, but there is also a seasonal pattern in the data. (b) Use the following dummy variables to develop an estimated regression equation to account for seasonal effects in the data: * - 1 if quarter 1, 0 otherwise; x - 1 if quarter 2, Q otherwise; x - 1 if quarter 3, D otherwise, (c) Compute the quarterly forecasts for next year. quarter 1 forecast quarter 2 forecast quarter 3 forecast quarter 4 forecast
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