Allie White, the chief loan officer for the Dominion Bank, would like to analyze the bank's loan portfolio for the years 2001 to 2006. The data are shown in Table P-17.
a. Compute the autocorrelations for time lags 1 and 2. Test to determine whether these autocorrelation coefficients are significantly different from zero at the .05 significance level.
b. Use a computer program to plot the data and compute the autocorrelations for the first six time lags. Is this time series stationary?

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TABLE P-17 Quarterly Loans (S millions) for Dominion Bank, 2001-2006 Calendar Mar 31 Jun. 30 Sep. 30 Dec. 31 2001 2002 2003 2004 2005 2006 2,313 2,860 3,399 4,458 5,756 6,369 2.495 2,609 3,099 3,471 4.850 6,013 6,568 3,202 3,545 5,093 6,158 6,646 2,792 3,161 3,851 5.318 6.289 6,861