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Question
Consider the quarterly production data (in thousands of units) for the XYZ manufacturing company below. The normalized (adjusted) seasonal factors are winter = .9982, spring = .9263, summer = 1.139, and fall = .9365.
Based on the following deseasonalized observations (dt), a trend line was estimated. The linear regression trend equation is trt = 10.1 + 1.91(t). Based on this trend equation, the following trend values are calculated for each period in the time series.
Isolate the cyclical and irregular components by calculating the estimate of CLt IRt for the first four quarters in the time series.
Answer
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