Question: Consider the following time series. a. Construct a time series plot. What type of pattern exists in the data? b. Use the following dummy variables

Consider the following time series.

a. Construct a time series plot. What type of pattern exists in the data?
b. Use the following dummy variables to develop an estimated regression equation to account for seasonal effects in the data: Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise.
c. Compute the quarterly forecasts for next year.

Year 1 71 49 58 Quarter Year 2 41 81 Year 3 62 53

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