Data on weekly earnings are collected as part of the Current Population Survey, a nationwide sample survey of households in which respondents are asked how much each wage and salary worker usually earns. The following table contains a portion of quarterly data on weekly earnings (Earnings, adjusted for inflation) in the U.S. from 2010?2017.

a. Plot the series to determine if the linear or the quadratic trend model is more suitable.

b. Create the time variable and the quarterly dummy variables to estimate the preferred seasonal trend model. Forecast expenses for the first quarter of 2018.

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Year Quarter Earnings 2010 347 2010 2 340 2017 4 347