What type of pattern exists in the data? The time series plot shows a trend pattern with no seasonal pattern present. The time series plot shows a trend pattern, but there is also a seasonal pattern in the data. The time series plot shows a horizontal pattern with no seasonal pattern present. The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data. Use the following dummy variables to develop an estimated regression equation to account for seasor x1 = 1 if quarter 1, 0 otherwise; x2 = 1 if quarter 2, 0 otherwise; x3 = 1 if quarter 3, 0 otherwis

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What type of pattern exists in the data?
The time series plot shows a trend pattern with no seasonal pattern present.
The time series plot shows a trend pattern, but there is also a seasonal pattern in the data.
The time series plot shows a horizontal pattern with no seasonal pattern present.
The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data.
(b) Use the following dummy variables to develop an estimated regression equation to account for seasonal effects in the data:
X1
1 if quarter 1, 0 otherwise; x2
1 if quarter 2, 0 otherwise; x3
1 if quarter 3, 0 otherwise.
%3D
(c) Compute the quarterly forecasts for next year.
quarter 1 forecast
quarter 2 forecast
quarter 3 forecast
quarter 4 forecast
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Transcribed Image Text:What type of pattern exists in the data? The time series plot shows a trend pattern with no seasonal pattern present. The time series plot shows a trend pattern, but there is also a seasonal pattern in the data. The time series plot shows a horizontal pattern with no seasonal pattern present. The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data. (b) Use the following dummy variables to develop an estimated regression equation to account for seasonal effects in the data: X1 1 if quarter 1, 0 otherwise; x2 1 if quarter 2, 0 otherwise; x3 1 if quarter 3, 0 otherwise. %3D (c) Compute the quarterly forecasts for next year. quarter 1 forecast quarter 2 forecast quarter 3 forecast quarter 4 forecast Submit Answer
Consider the following time series.
Quarter
Year 1
Year 2
Year 3
1
70
67
61
2
50
42
52
3
58
60
53
4
77
80
71
(a) Construct a time series plot.
90
90
90
80
80
80
70
70
70
60
60
60
40
40
40
30
30
30
20
20
20
10
10
10
1 2
3
4 1 2 3 4 1 2
4
1 2 3 4 1 2 3 4
1
2
4
1 2 3 4
1 2
3 4
1
2
3
4
Year 1
Year 2
Year 3
Year 1
Year 2
Year 3
Year 1
Year 2
Year 3
Year/Quarter
Year/Quarter
Year/Quarter
90
80
70
60
50
40
30
20
10
1 2 3 4 1 2 3 4 1 2
4
Year 1
Year 2
Year 3
Year/Quarter
Time Series Value
Transcribed Image Text:Consider the following time series. Quarter Year 1 Year 2 Year 3 1 70 67 61 2 50 42 52 3 58 60 53 4 77 80 71 (a) Construct a time series plot. 90 90 90 80 80 80 70 70 70 60 60 60 40 40 40 30 30 30 20 20 20 10 10 10 1 2 3 4 1 2 3 4 1 2 4 1 2 3 4 1 2 3 4 1 2 4 1 2 3 4 1 2 3 4 1 2 3 4 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year/Quarter Year/Quarter Year/Quarter 90 80 70 60 50 40 30 20 10 1 2 3 4 1 2 3 4 1 2 4 Year 1 Year 2 Year 3 Year/Quarter Time Series Value
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