Quarterly billing for water usage is shown in the following table. Assume the time series has seasonality with trend. Quarter Year 1 Year 2 Year 3 Year 4 Winter 65 Spring 102 Summer 153 Fall 72 65 (b) Forecast the summer of Year 5. 104 Forecast the spring of Year 6. 159 73 67 105 161 77 72 119 (a) Solve for the forecast equation that minimizes the sum of squared error. 177 87 x₁ = 1 if winter, 0 otherwise; x₂ = 1 if spring, 0 otherwise; x3 = 1 if summer, 0 otherwise.

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