Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 4 6 7 2 2 3 6 3 3 5 6 4 5 7 8 a. Construct a time series plot. What type of pattern exists in the data? Trend Pattern Seasonal Pattern Horizontal Pattern O Trend and Seasonal Pattern Question 11 5 pts b. Create the following dummy variables: Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2, 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise. Create a variable t such that t = 1 for quarter 1 of year 1, t = 2 for quarter 2 of year 1, ..., t = 12 for quarter 4 of year 3. Use these dummy variables and t to develop an estimated regression equation to account for seasonal effects and any linear trend in the data. What is the forecast for quarter 1 of next year?
Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 4 6 7 2 2 3 6 3 3 5 6 4 5 7 8 a. Construct a time series plot. What type of pattern exists in the data? Trend Pattern Seasonal Pattern Horizontal Pattern O Trend and Seasonal Pattern Question 11 5 pts b. Create the following dummy variables: Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2, 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise. Create a variable t such that t = 1 for quarter 1 of year 1, t = 2 for quarter 2 of year 1, ..., t = 12 for quarter 4 of year 3. Use these dummy variables and t to develop an estimated regression equation to account for seasonal effects and any linear trend in the data. What is the forecast for quarter 1 of next year?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Consider the following time series data.
Quarter
Year 1
Year 2
Year 3
1
4
6
7
2
2
3
6
3
3
5
6
4
5
7
8
a. Construct a time series plot. What type of pattern exists in
the data?
Trend Pattern
Seasonal Pattern
Horizontal Pattern
O Trend and Seasonal Pattern
Question 11
5 pts
b. Create the following dummy variables: Qtr1 = 1 if quarter
1, 0 otherwise; Qtr2 = 1 if quarter 2, 0 otherwise; Qtr3 = 1 if
quarter 3, 0 otherwise. Create a variable t such that t = 1 for
quarter 1 of year 1, t = 2 for quarter 2 of year 1, ..., t = 12 for
quarter 4 of year 3. Use these dummy variables and t to
develop an estimated regression equation to account for
seasonal effects and any linear trend in the data. What is the
forecast for quarter 1 of next year?
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