Macroeconomics (9th Global Edition)
9th Edition
ISBN: 9780134141534
Author: Andrew B. Abel, Ben Bernanke
Publisher: Pearson Global Edition
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Textbook Question
Chapter 8, Problem 5WWMD
In the FRED database, find a variable that is available in both a seasonally adjusted form and a not seasonally adjusted form. Plot both over time and describe how large the seasonal variation in the variable is.
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A local moving company has collected data on the number of moves they have been asked to perform over the past two years. Moving is highly seasonal, so the owner/operator, who is both burly and highly educated, decides to apply the multiplicative seasonal method to forecast the number of customers for the coming year. The equation for the trend line of yearly sales is Ft = 16 + 60t. Please forecast demand for each quarter in Year 3. (Round the forecasts to whole numbers and show all calculations).
Complete the table below and forecast the sales of Year 3 by quarter.
Year 1
Year 2
Year 3
Quarter
Demand
Seasonal Index
Quarter
Demand
Seasonal Index
Average Seasonal Index
Forecast
1
20
1
27
2
40
2
45
3
45
3
55
4
31
4
41
Total
Average
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Macroeconomics (9th Global Edition)
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