Suppose the following are the seasonal indices for the first three quarters of t

Question

Suppose the following are the seasonal indices for the first three quarters of the year for a quarterly series: Quarter Seasonal Index Q1 73.7 Q2 82.5 Q3 108.1 Remember that the seasonal indices should average 100 so you should be able to infer the seasonal index for Q4. Furthermore, suppose that the estimated coeffcients from a regression of the deseasonalized series on Time are given below: Coefficients Intercept 2,733 Time 65.8 If the original value of the series in a Q4 was 2,197, then what is the seasonally adjusted value? (please round your answer to 1 decimal place) MUST SHOW ALL WORK AND CALCULATIONS!

Explanation / Answer

for avg of all seasonal index =100

hence 73.7+82.5+108.1+Q4=400

Q4=135.7

hence  seasonally adjusted value for 2197 of Q4 =2197*135.7/100=2981.329

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