Question: A statistical program is recommended. Consider the following time series. (a) Construct a time series plot. What type of pattern exists in the data? The


A statistical program is recommended. Consider the following time series. (a) Construct a time series plot. What type of pattern exists in the data? The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data. The time series plot shows a trend pattern with no seasonal pattern present. The time series plot shows a horizontal pattern with no seasonal pattern present. The time series plot shows a trend pattern, but there is also a seasonal pattern in the data. (b) Use the following dummy variables to develop an estimated regression equation to account for seasonal effects in the data: x1=1 if quarter 1,0 otherwise; x2=1 if quarter 2,0 otherwise; x3=1 if quarter 3,0 otherwise. y^=6010x1+20x2+5x3+ (c) Compute the quarterly forecasts for next year. quarter 1 forecast quarter 2 forecast quarter 3 forecast quarter 4 forecast
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
