Develop linear regression models relating seat occupancy to discount fares to forecast seat occupancy for each quarter in year 6. Assume a fare discount of 20% for quarter 1, 36% for quarter 2, 25% for quarter 3, and 30% for quarter 4.

Arrow Air Is a regional East Coast airline that has collected data for the percentage available seats occupied on its ights for four quarters{1) January-March, {2] April-June. {3) July-September, and {4) OctoberDecemberfor the past 5 years. Arrow Air also has collected data for the average percentage fare discount for each of these quarters, as follows: Seat Average Occupancy Fare Discount Year Quarter (96) (56) i l 63 21 2 75 34 3 76 18 4 58 26 2 l 59 is 2 62 40 3 81 25 4 76 30 3 I 65 23 2 70 28 3 78 30 4 69 35 4 l 59 20 2 6| 3S 3 83 26 4 7 l 30 5 I 60 25 2 66 37 3 86 25 4 14 30