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Set out below are the sales per quarter (in 000’s of units) of a company over the last 3 years.
Quarter
1 2 3 4
2000 80 87 82 90
2001 90 95 93 102
2002 105 112 103 116Required
a) Identify the trend and calculate the average seasonal variation.
b) Calculate the average seasonal variation using the multiplicative model.The F5 examiner will no longer ask calculations of time series in future exams.
If you want to see how moving averages and seasonal variations are calculate, you will find a full lecture on the Paper F2 pages.
(It is assumed knowledge from Paper F2 which is why the examiner has said that she will no longer as arithmetic, even though she does expect you to know what is happening)
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