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

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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