Problem 6-25 Consider the following time series data. a. Choose the correct time series plot. Time Series Values war 1 Yearler Quarter Que O Que Yer Year 2. Quiet wear w ar 2 Yar Qwer Our a r Y Qurter O 3 Year Outer Time Period 1. B Time Series Values Yart, Year, Year!, Year, Yr Yr. Quarter Duarter Our Owner Quarter ter For year. Your 3 Yar Yar Yar? wer Our Quarter Quarter Qua Quarter Time Period iii. Time Series Values Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2, Year 2 Year 3 Year 3, Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 1 2 3 4 1 2 3 4 1 2 Time Period Ye 3, Year 3 water Quarter 3 4 iv. D Time Series Values Year 1 Year 1, Year 1 Year 1, Year 2 Year 2 Year 2 Year 2 Year 3, Year 3, Year 3 Year 3, Quarter Quarter Qrurter Quarter Quarter Duarter Qurter Quarter Quarter Quarter Quarter Quarter 1 2 3 4 1 2 Time Period Answer? What type of pattern exists in the data? Al. Downward Trend Patteri A2. Upward Trend Pattem A3. Horizontal Pattem with Seasonality b. Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Otr1 = 1 if Quarter 1, 0 otherwise; Otr2 = 1 if Quarter 2,0 otherwise, Otr3 = 1 if Quarter 3.0 otherwise. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sigt before the blank. (Example: -300) Value = Qtrl + Qtr2+1 Otr3+ c. Compute the quarterly forecasts for next year. If required, round your answers to two decimal places Quarter 1 forecast = 1 Quarter 2 forecast Quarter 3 forecast = Quarter 4 forecast = 1 Plot (iii) What type of pattern exists in the data? Horizontal Pattern with Seasonality b. Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr 1 - 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr 3 = 1 if Quarter 3, 0 otherwise. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) Value = 6.6667 X + -1 X Qtri + -3 X Qtr2+ -2 X Qtr3 + 0.40625 Xt C. Compute the quarterly forecasts for next year. If required, round your answers to two decimal places. Quarter 1 forecast = 8 x Quarter 2 forecast - 7 Quarter 3 forecast = 8 X Quarter 4 forecast = 9 x Problem 6-25 Consider the following time series data. a. Choose the correct time series plot. Time Series Values war 1 Yearler Quarter Que O Que Yer Year 2. Quiet wear w ar 2 Yar Qwer Our a r Y Qurter O 3 Year Outer Time Period 1. B Time Series Values Yart, Year, Year!, Year, Yr Yr. Quarter Duarter Our Owner Quarter ter For year. Your 3 Yar Yar Yar? wer Our Quarter Quarter Qua Quarter Time Period iii. Time Series Values Year 1 Year 1 Year 1 Year 1 Year 2 Year 2 Year 2, Year 2 Year 3 Year 3, Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter Quarter 1 2 3 4 1 2 3 4 1 2 Time Period Ye 3, Year 3 water Quarter 3 4 iv. D Time Series Values Year 1 Year 1, Year 1 Year 1, Year 2 Year 2 Year 2 Year 2 Year 3, Year 3, Year 3 Year 3, Quarter Quarter Qrurter Quarter Quarter Duarter Qurter Quarter Quarter Quarter Quarter Quarter 1 2 3 4 1 2 Time Period Answer? What type of pattern exists in the data? Al. Downward Trend Patteri A2. Upward Trend Pattem A3. Horizontal Pattem with Seasonality b. Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Otr1 = 1 if Quarter 1, 0 otherwise; Otr2 = 1 if Quarter 2,0 otherwise, Otr3 = 1 if Quarter 3.0 otherwise. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sigt before the blank. (Example: -300) Value = Qtrl + Qtr2+1 Otr3+ c. Compute the quarterly forecasts for next year. If required, round your answers to two decimal places Quarter 1 forecast = 1 Quarter 2 forecast Quarter 3 forecast = Quarter 4 forecast = 1 Plot (iii) What type of pattern exists in the data? Horizontal Pattern with Seasonality b. Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr 1 - 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr 3 = 1 if Quarter 3, 0 otherwise. If required, round your answers to three decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300) Value = 6.6667 X + -1 X Qtri + -3 X Qtr2+ -2 X Qtr3 + 0.40625 Xt C. Compute the quarterly forecasts for next year. If required, round your answers to two decimal places. Quarter 1 forecast = 8 x Quarter 2 forecast - 7 Quarter 3 forecast = 8 X Quarter 4 forecast = 9 x