Consider the following time series data:

a. Construct a time series plot. What type of pattern exists in the data?
b. Use an Excel or LINGO model with dummy variables as follows to develop an 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 nextyear.

Transcribed Image Text:

Quarter Year Year Year 3 6