Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 8. 2 5 3 4 6 7 8 9. (a) Construct a time series plot. What type of pattern exists in the data? O The time series plot shows a...

Extracted text: Consider the following time series data. Quarter Year 1 Year 2 Year 3 1 8. 2 5 3 4 6 7 8 9. (a) Construct a time series plot. What type of pattern exists in the data? O The time series plot shows a linear trend and no seasonal pattern in the data. O The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data. O The time series plot shows horizontal pattern and no seasonal pattern in the data. The time series plot shows linear trend and a seasonal pattern in the data. (b) Use a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. (Round your numerical values to three decimal places.) x, = 1 if quarter 1, 0 otherwise; x, = 1 if quarter 2, 0 otherwise; x, = 1 if quarter 3, 0 otherwise ŷ = (c) Compute the quarterly forecasts for the next year based on the model you developed in part (b). (Round your answers to two decimal places.) quarter 1 forecast quarter 2 forecast quarter 3 forecast quarter 4 forecast (d) Use a multiple regression model to develop an equation variables you developed in part (b) to capture seasonal effects and create a variable t such that t = 1 for quarter 1 in year 1, account for trend and seasonal effects in the data. Use the dummy t = 2 for quarter 2 in year 1, ... t = 12 for quarter 4 in year 3. (Round your numerical values to three decimal places.) Ý = (e) Compute the quarterly forecasts for the next year based on the model you developed in part (d). (Round your answers to two decimal places.) quarter 1 forecast quarter 2 forecast quarter 3 forecast quarter 4 forecast