Problem 6-25 Consider the following time series data. Quarter Year 2 Year 1 4 Year 3 7 6 3 4 7 a. Choose the correct time series plot. (1) 9 8 7 6 Time Series Values 4 3 2 1 0 Year 3, Year 3, Year 2 Year 2 Year 3 Year 3, Year 1, Year 1 Year 1 Year 1, Year 2, Year 2 Previous Next > W C 8 Time Series Values 1 0 Year 1 Year 1 Year 1 Year 1 Year 2, Year 2, Year 2 Year 2 Year), Year 3 Year 3, Year Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 1 2 1 2 3 4 2 Time Period WS 9 8 7 Time Series Values Tume period (1) 9 8 7 Time Series Values 2 1 0 Year 1 Year 1, Year 1 Year 1, Year 2, Year 2 Year 2 Year 2 Year 3 Year 3, Year 3 Year 3, Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 1 1 2 3 4 1 2 3 Time Period (iv) ime Series Values Previous Next) Year 1 Year 1 Year 1, Year 1 Year 2 Year 2 Year 2, Year 2. Year 3, Year 3, Year 3, Year 3, Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 2 2 1 2 4 Time Period Plotiv What type of pattern exists in the data? 6.667 b. Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Quri = 1 Quarter 1, 0 otherwise; Qur2 - 1 if Quarter 2,0 otherwise; Qtr3 = 1 1 Quarter 3, 0 otherwise. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) Value Qtri + Qu2+1 Qur3+ c. Compute the quarterly forecasts for next year. If required, round your answers to two decimal places Quarter 1 forecast - Quarter 2 forecast - 3.667 5.667 4,667 Quarter 3 forecast - Quarter 4 forecast 6.667 Previous Next > end Sumit siement for Grading