a$)$ Develop a seasonally adjusted forecast model for seat occupancy. Forecast seat Arrow Air is a regional East Coast airline that has collected data for the percentage available seats occupied on its flights for four quarters$-(1)$ January$-$March, $(2)$ AprilJune, $(3)$ July$-$September, and $(4)$ October$-$December$-$for the past $5$ years. Arrow Air also has collected data for the average percentage fare discount for each of these quarters, as follows:

$\backslash$table$[[$Year$,$Quarter,Average Fare Discount $(\%),$Seat Occupancy $(\%)],[1,1,63,21],[,2,75,34],[,3,76,18],[,4,58,26],[2,1,59,18],[,2,62,40],[,3,81,25],[,4,76,30],[3,1,65,23],[,2,70,28],[,3,78,30],[,4,69,35]]$ a$)$ Develop a seasonally adjusted forecast model for seat occupancy. Forecast seat

occupancy for year $6$ by using a linear trend line forecast estimate for seat

occupancy in year $6.$

b$)$ Develop linear regression models relating seat occupancy to discount fares in order

to forecast seat occupancy for each quarter in year $6.$ Assume a fare discount of $20\%$

for quarter $1,36\%$ for quarter $2,25\%$ for quarter $3,$ and $30\%$ for quarter $4.$

c$)$ Compare the forecasts developed in $($a$)$ and $($b$)$ and indicate which one appears to

be the best.

occupancy for year $6$ by using a linear trend line forecast estimate for seat

occupancy in year $6.$

b$)$ Develop linear regression models relating seat occupancy to discount fares in order

to forecast seat occupancy for each quarter in year $6.$ Assume a fare discount of $20\%$

for quarter $1,36\%$ for quarter $2,25\%$ for quarter $3,$ and $30\%$ for quarter $4.$

c$)$ Compare the forecasts developed in $($a$)$ and $($b$)$ and indicate which one appears to

be the best.