Please show work. Thank you!! QUESTION 26 Suppose the following are the seasonal

Question

Please show work.

Thank you!!

QUESTION 26 Suppose the following are the seasonal indices for the first three quarters of the year for a quarterly series Quarter 01 Q2 03 Seasonal Index 73.7 84 107 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 Coefficient 1,966 69.1 Intercept If the original value of the series in a Q4 was 1,968, then what is the seascnally adjusted value? (please round your answer to 1 decima

Explanation / Answer

Solution:

Given Quarter Seasonal Indexes Q1= 73.7 Q2= 84 Q3= 107

Let 4th Quarter seasonal index = Q4

Given 4 seasonal average indexes is 100

(73.7 + 84 + 107 +Q4) /4 =100

Hence Q4 = 400-264.7 =135.3

Deseasonal series of the time for 1,2,3,4

For the TIME1

Y1=1966+69.1*1 = 2035.1

TIME 2

Y2=1966+69.1*2 = 4070.2

TIME 3

Y2=1966+69.1*3 =6105.3

TIME 4

Y2=1966+69.1*4 =8140.4

Q4 = 1968*1.353 = 2662.70 is the seasonally adjusted value

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