Data on weekly earnings are collected as part of the Current Population Survey, a nationwide sample survey of households in which respondents are asked how much each worker usually earns. The accompanying data file includes quarterly data on weekly earnings (Earnings, adjusted for inflation) in the U.S. from 2010-2017.

a-1. Estimate the linear and the quadratic trend models with seasonal dummy variables.Report the coefficients for trend t and trend-squared t²

Note: Negative values for regression coefficients should be indicated by a minus sign. Round final answers to 2 decimal places.

Predictor Variable Linear Quadratic

t ______ _________

t2 ______ _________

a-2. Determine the preferred model.

__________ based on the value of __________.

b. Use the preferred model to forecast to make a forecast for the first two quarters of 2018.

Note: Do not round coefficient estimates. Round final answers to 2 decimal places.

Quarter Forecast

Quarter 1 _________

Quarter 2 _________

Year	Quarter	Earnings
2010	1	347
2010	2	340
2010	3	339
2010	4	344
2011	1	341
2011	2	334
2011	3	332
2011	4	338
2012	1	337
2012	2	335
2012	3	329
2012	4	336
2013	1	334
2013	2	333
2013	3	330
2013	4	337
2014	1	339
2014	2	328
2014	3	332
2014	4	338
2015	1	344
2015	2	337
2015	3	337
2015	4	348
2016	1	350
2016	2	343
2016	3	343
2016	4	351
2017	1	355
2017	2	351
2017	3	350
2017	4	347