Question: How do you solve it without using excel! Please show the steps! Consider the following time series data. Quarter Year 1 Year 2 1 4


How do you solve it without using excel! Please show the steps!
Consider the following time series data. Quarter Year 1 Year 2 1 4 6 2 2 3 3 3 5 6 4 5 7 8 a. Construct a time series plot. What type of pattern exists in the data? Trend Pattern Seasonal Pattern Horizontal Pattern Trend and Seasonal Pattern Year 3 7 6 b. Create the following dummy variables: Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2, 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise. Create a variable t such that t = 1 for quarter 1 of year 1, t = 2 for quarter 2 of year 1, ..., t = 12 for quarter 4 of year 3. Use these dummy variables and t to develop an estimated regression equation to account for seasonal effects and any linear trend in the data. What is the forecast for quarter 1 of next year? 8.32 9.58 9.21 8.92Step by Step Solution
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