A financial planner tracks the number of new customers addedeach quarter for a 6 year period. The data is presented below:
Year               Quarter                      New                Year               Quarter          New
2014Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â IÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 31Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2017Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â IÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 69
                        II                                  24                                            II                      54
                        III                                 23                                            III                     46
                        IV                                16                                            IV                    32
2015Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â IÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 42Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2018Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â IÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 82
                        II                                  35                                            II                      66
                        III                                 30                                            III                     51
                        IV                                23                                            IV                    38
2016Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â IÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 53Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 2019Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â IÂ Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 91
                        II                                  45                                            II                      72
                        III                                 39                                            III                     59
                        IV                                27                                            IV                    41
Create a simple linear trend regression model.Let t=0 in 2013: IV. This is a computerdeliverable.
(a) Interpret the slope coefficient.
(b) Test to see if the number of new customers is increasingover time. Use alpha = 0.01.
(c) Test to see if the model has explanatory power. Use alpha =0.05.
(d) Forecast the number of new customers in the first and secondquarters of 2020.
Create a multiple regression equationincorporating both a trend (t=0 in 2013: IV) and dummy variablesfor the quarters. Let the first quarter represent the reference (orbase) group. Complete (e) thru (h) using your results. This is acomputer deliverable.
(e) Test to see if there is an upward trend in new customers.Use alpha = 0.01.
(f) Test to see if the model has explanatory power. Use alpha =0.05.
(g) Forecast the number of new customers in the first and secondquarters of 2020.
(h) Test for the existence of first order autocorrelation, usealpha = 0.05. The calculated dw = 1.19.
