Six years of quarterly data of a seasonally adjusted series are used to estimate

Question

Six years of quarterly data of a seasonally adjusted series are used to estimate a linear trend model as T^_t = 117.00 + 1.41 t. In addition, quarterly seasonal indices are calculated as S^_1 = 0.86, S^_2? = 0.85, S^_3 = 1.05, and S^_4= 1.15. a-1. Interpret the first quarterly index in other words, what is the value of the series in the first quarter as compared to the average? 86% above 14% below 86% below 14% above a-2. Interpret the fourth quarterly index. In other words what is the value of the series in the fourth quarter as compared to the average? 85% above 85% below 15% above 15% below b. Make a forecast for all four quarters of next year (Round your answers to 2 decimal places.)

Explanation / Answer

a-1)14% below

a-2) 15% above

b) quarter 1 =(117+1.41*25)*0.86=130.94

quarter 2 =(117+1.41*26)*0.85=130.61

quarter 3 =(117+1.41*27)*1.05=162.82

quarter 4 =(117+1.41*28)*1.15=179.95

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.