Question: Hourly earnings. Continue the previous exercise. EARN (a) Make indicator variables for the months of the year, and fit a linear trend along with 11

Hourly earnings. Continue the previous exercise. EARN

(a) Make indicator variables for the months of the year, and fit a linear trend along with 11 indicators to the data series. Report your estimated model.

(b) Does the regression output suggest the presence of seasonality? Explain how you reach your conclusion.

(c) Based on the regression output, which variables appear not to be contributing significantly to the fit?

Rerun the regression without those variables and report your estimated model.

(d) Based on the fit from part (c), make a forecast for the occupancy rate for August 2014.

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