This question refers to Problem 17. Compute the first differences of the quarterly loan data for Dominion Bank.
a. Compute the autocorrelation coefficient for time lag 1 using the differenced data.
b. Use a computer program to plot the differenced data and compute the autocorrelations for the differenced data for the first six time lags. Is this time series stationary?
Problem 17
Allie White, the chief loan officer for the Dominion Bank, would like to analyze the bank's loan portfolio for the years 2001 to 2006. The data are shown in Table P-17.

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TABLE P-17 Quarterly Loans (S millions) for Dominion Bank, 2001-2006 Calendar Mar 31 Jun. 30 Sep. 30 Dec. 31 2001 2002 2003 2004 2005 2006 2,313 2,860 3,399 4,458 5,756 6,369 2.495 2,609 3,099 3,471 4.850 6,013 6,568 3,202 3,545 5,093 6,158 6,646 2,792 3,161 3,851 5.318 6.289 6,861