Pls answer b and c Consider the following time series.QuarterYear 1Year 2Year 370676148405035759524778071(a) Construct a time series plot. What type of pattern exists in the data? Is there an indication of a seasonal pattern?O The time series plot shows a horizontal 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 trend 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 a multiple linear regression model with dummy variables as follows to develop an 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 the next year.quarter 1 forecastquarter 2 forecastquarter 3 forecastquarter 4 forecast

As requested, I have solved the (b) and (c) part. Kindly refer to Step 2 and 3 for the solution.

Answered: Consider the following time series.…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.7: Exponential Smoothing Models

Problem 29P: The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building...

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The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building materials (which includes retail sales of building materials, hardware and garden supply stores, and mobile home dealers). a. Is seasonality present in these data? If so, characterize the seasonality pattern. b. Use Winters method to forecast this series with smoothing constants = = 0.1 and = 0.3. Does the forecast series seem to track the seasonal pattern well? What are your forecasts for the next 12 months?
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