Consider the following time series Quarter Year1 Year2 Year3
1 71 68 62
2 49 41 51
3 58 60 53
4 78 81 72
a. construct a time series plot. what type of pattern exist in the data
b. use the following dummy variables to develop an estimated regression equation to account for the seasonal effects in the data; Qtr1=1 if Quater 1,0 otherwise Qtr2=1 if Quater 2,0 otherwise Qtr3=1 if Quater 3,0 otherwise
c. compute the quarterly forecast for next year