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! PleaseHow do you solve it without using excel! Please

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 8.92

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