Consider the following quarterly time series.
| Quarter | Year 1 | Year 2 | Year 3 |
| 1 | 923 | 1,112 | 1,243 |
| 2 | 1,056 | 1,156 | 1,301 |
| 3 | 1,124 | 1,124 | 1,254 |
| 4 | 992 | 1,078 | 1,198 |
- Construct a time series plot. What type of pattern exists in the data?
- Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if quarter 1, 0 otherwise; Qtr2 = 1 if quarter 2, 0 otherwise; Qtr3 = 1 if quarter 3, 0 otherwise.
- Compute the quarterly forecasts for next year based on the model developed in part (b)
Solution:
Looking for help with your homework?
Grab a 30% Discount and Get your paper done!
Place an Order
