Question: Six years of quarterly data of a seasonally adjusted series are used to estimate a linear trend model as T t = 128.20 + 1.06t.

Six years of quarterly data of a seasonally adjusted series are used to estimate a linear trend model as T̂_t = 128.20 + 1.06t. In addition, quarterly seasonal indices are calculated as

a. Interpret the first and fourth quarterly indices.

b. Make a forecast for all four quarters of next year.

S 0.93, S2 0.88, S 1.14, and S4-1.05

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