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Consider the quarterly electricity production for years 1-4: Year 1 2 3 4 Q1 99 120 139 160 Q2 88 108 127 148 Q3 93

Consider the quarterly electricity production for years 1-4: Year 1 2 3 4 Q1 99 120 139 160 Q2 88 108 127 148 Q3 93 111 131 150 Q4 111 130 152 170 (a) Estimate the trend using a centered moving average. (b) Using a classical additive decomposition, calculate the seasonal component. (c) Explain how you handled the end points. Note: Explain all the steps and computations in your own words and it should be typed on Microsoft word .

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Solution a If the endpoints are ignored we obtain the following results Year Quarter Obs Sim... blur-text-image

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