Consider the following time series. Quarter Year 1 Year 2 Year 3 72 69 63 2 49 41 51 57 59 52 77 80 71 (a) Construct a time series plot. 90 90 T 90 T 90 80 80- 70- 60- 50 80 80- 70 70 70- 60 60 60 50...

Extracted text: Consider the following time series. Quarter Year 1 Year 2 Year 3 72 69 63 2 49 41 51 57 59 52 77 80 71 (a) Construct a time series plot. 90 90 T 90 T 90 80 80- 70- 60- 50 80 80- 70 70 70- 60 60 60 50 50 50- 40 40 40- 40 30 30 30 30 20 20 20 - 20 10 10 10- 10 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 Year/Quarter Year/Quarter Year/Quarter Year/Quarter What type of pattern exists in the data? O The time series plot shows a trend pattern with no seasonal pattern present. O The time series plot shows a trend pattern, but there is also a seasonal pattern in the data. O The time series plot shows a horizontal pattern with no seasonal pattern present. O The time series plot shows a horizontal pattern, but there is also a seasonal pattern in the data. (b) Use the following dummy variables to develop an estimated regression equation to account for seasonal effects in the data: x, = 1 if quarter 1, 0 otherwise; x, = 1 if quarter 2, 0 otherwise; x, = 1 if quarter 3, 0 otherwise. (c) Compute the quarterly forecasts for next year. quarter 1 forecast quarter 2 forecast quarter 3 forecast quarter 4 forecast Time Series Value hme Series Value