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 73.8

Q2 86.9

Q3 108.6

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 2,854

Time 76.8

If the original value of the series in a Q4 was 2,050, then what is the seasonally adjusted value? (please round your answer to 1 decimal place)

Explanation / Answer

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

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