South Shore Construction builds permanent docks and seawallsalong the southern shore of Long Island, New York. Although thefirm has been in business only five years, revenue has increasedfrom $315,000 in the first year of operation to $1,075,000 in themost recent year. The following data show the quarterly salesrevenue in thousands of dollars.

Quarter	Year 1	Year 2	Year 3	Year 4	Year 5
1	24		40		80		92		163
2	97		144		154		197		292
3	172		245		329		389		439
4	22		23		48		83		181

a. Which of the following is the correct timeseries plot?

What type of pattern exists in the data?

There appears to be a seasonal pattern in the data and perhapsa

b. Use the following dummy variables to developan estimated regression equation to account for any seasonaleffects in the data: Qtr1=1 if Quarter 1, 0 otherwise; Qtr2=1 ifQuarter 2, 0 otherwise; Qtr3=1 if Quarter 3, 0 otherwise. Roundyour answers to whole number.

Revenue= _ + _ Qtr1 + _ Qtr2 + _ Qtr3

Compute the quarterly forecasts for next year.

Quarter 1 forecast
Quarter 2 forecast
Quarter 3 forecast
Quarter 4 forecast

c. Let Period =1 to refer to the observation inquarter 1 of year 1; Period=2 to refer to the observation inquarter 2 of year 1; . . . and Period=20 to refer to theobservation in quarter 4 of year . Using the dummy variablesdefined in part (b) and Period, developan estimated regression equation to account for seasonal effectsand any linear trend in the time series. Based upon the seasonaleffects in the data and linear trend, compute the quarterlyforecasts for next year. Round your answers to whole number. Enternegative value as negative number.

The regression equation is:

Revenue = _ + _ Qtr1 + _ Qtr2 + _ Qtr3 + _ Period

The quarterly forecasts for next year are as follows:

Quarter 1 forecast
Quarter 2 forecast
Quarter 3 forecast
Quarter 4 forecast