Question: Consider the following linear trend models estimated from 10 years of quarterly data with and without seasonal dummy variables d 1 , d 2 ,
Consider the following linear trend models estimated from 10 years of quarterly data with and without seasonal dummy variables d1, d2, and d3. Here, d1 = 1 for quarter 1, 0 otherwise; other dummy variables are defined similarly.
Model 1: yt = 39.00 + 0.56t Model 2: yt = 39.00 + 0.76t 0.29d1 0.41d2 0.08d3
Consider the following linear trend models estimated from 10 years of quarterly data with and without seasonal dummy variables d1. d2, and d3. Here, d =1 for quarter 1, 0 otherwise; other dummy variables are defined similarly. Model 1: t 39.00 + 0.56t 39.00 +0.76t 0.29d1 0.41d2 - 0.08d3 Model 2: t a. Make a forecast for the first and the fourth quarter of the 11th, Date 1 Quarter, Year 11 4th Quarter, Year 11 Model 1 Model 2 year. (Round your answers to 2 decimal places.)
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