Question: 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

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: =30.00+0.63t Model 2:=30.00+0.83t0.28d1=0.39d20.08d3 a. Use each model to make a forecast for y for the first and the fourth quarters of the 1th year. Note: Round your answers to 2 decimal places. b. Which is the preferred model for forecasting if, relative to Model 1, Model 2 has higher R2 but lower adjusted R2

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