Question: 1. Consider the Johnson and Johnson quarterly earnings data from January 1960 to December 1980 (R data Johnson Johnson) a. Plot the data. Describe

1. Consider the Johnson and Johnson quarterly earnings data from January 1960

1. Consider the Johnson and Johnson quarterly earnings data from January 1960 to December 1980 (R data Johnson Johnson) a. Plot the data. Describe the features of the data. Do the data look station- ary? Explain your answer. b. Apply an appropriate variance stabilizing transformation, if necessary. c. Carry out classical decomposition of the data, plot the transformed series along with the ACF and PACF. d. Identify an ARMA model for the transformed data. e. Repeat c and d, but instead of classical decomposition, use differencing to make the data stationary.

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