Six years of quarterly data of a seasonally adjusted series are used to estimate a linear trend model as T t=181.60 + 1.44t. In addition, quarterly seasonal indices are calculated as § 1= 0.85, § 2= 0.91, Ŝ 3 = 116, and § 4= 119. a-1. Interpret the first quarterly index. In other words, what is the value of the series in the first quarter as compared to the average? 15% above O 85% below O 15% below 85% above a-2. Interpret the fourth quarterly index. In other words, what is the value of the series in the fourth quarter as compared to the average? O 81% above O 19% above 19% below O 81% below b. Make a forecast for all four quarters of next year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Quarter 1 Quarter 2 Quarter 3 Quarter 4

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Six years of quarterly data of a seasonally adjusted series are used to estimate a linear
trend model as T t=181.60 + 1.44t. In addition, quarterly seasonal indices are
calculated as § 1= 0.85, § 2= 0.91, Ŝ 3 = 116, and § 4= 119.
a-1. Interpret the first quarterly index. In other words, what is the value of the series in
the first quarter as compared to the average?
15% above
O 85% below
O 15% below
85% above
a-2. Interpret the fourth quarterly index. In other words, what is the value of the series
in the fourth quarter as compared to the average?
O 81% above
O 19% above
19% below
O 81% below
b. Make a forecast for all four quarters of next year. (Do not round intermediate
calculations. Round your answers to 2 decimal places.)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Transcribed Image Text:Six years of quarterly data of a seasonally adjusted series are used to estimate a linear trend model as T t=181.60 + 1.44t. In addition, quarterly seasonal indices are calculated as § 1= 0.85, § 2= 0.91, Ŝ 3 = 116, and § 4= 119. a-1. Interpret the first quarterly index. In other words, what is the value of the series in the first quarter as compared to the average? 15% above O 85% below O 15% below 85% above a-2. Interpret the fourth quarterly index. In other words, what is the value of the series in the fourth quarter as compared to the average? O 81% above O 19% above 19% below O 81% below b. Make a forecast for all four quarters of next year. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Quarter 1 Quarter 2 Quarter 3 Quarter 4
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