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

Question:

Six years of quarterly data of a seasonally adjusted series are used to estimate a linear trend model as T̂t = 128.20 + 1.06t. In addition, quarterly seasonal indices are calculated as Ŝ1 = 0.93, Ŝ2 = 0.88, Ŝ3 = 1.14, and Ŝ4 = 1.05.

a. Interpret the first and the fourth quarterly indices.

b. Make a forecast for all four quarters of next year

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: