Question: Consider the following linear trend models estimated from 10 years of quarterly data with and without seasonal dummy variables d, d and dy. Here,
Consider the following linear trend models estimated from 10 years of quarterly data with and without seasonal dummy variables d, d and dy. Here, d =1 for quarter 1, 0 otherwise; other dummy variables are defined similarly Model 1 948.00 +0.44t Model 29 48.00 0.461 0.38d1 -0.42d2 -0.12dg a. Make a forecast for the first and the fourth quarter of the 11th year (Round your answers to 2 decimal places.) Date 1 Quarter, Year 11 4th Quarter, Year 11 Model 1 Model 2 ces b. Which is the preferred model for forecasting if, relative to Model 1, Model 2 has higher a2 but lower adjusted ? because it has
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