A Time Series Is Shown in the Table Below A Compute the Five-Day Moving Averages to Remove the Seasonal

question 41

Essay

A time series is shown in the table below: $$\begin{array}{l}\text { Week }\\\begin{array} { | l | c c c c | } \hline \text { Day } & 1 & 2 & 3 & 4 \\\hline \text { Monday } & 16 & 15 & 18 & 21 \\\text { Tuesday } & 22 & 21 & 20 & 25 \\\text { Wednesday } & 20 & 23 & 20 & 24 \\\text { Thursday } & 29 & 28 & 32 & 28 \\\text { Friday } & 35 & 31 & 29 & 36 \\\hline\end{array}\end{array}$$ a. Compute the five-day moving averages to remove the seasonal and random variation.
b. Calculate the seasonal (daily) indexes.
c. What do the daily indexes tell us?
d. Find the regression trend line.
e. Calculate the seasonal indexes, based on the regression trend line developed in (d).

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Definitions:

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