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Unemployment numbers actually recorded in a town for the second quarter of the year 2000 were 4700.The underlying trend at this point was 4300 people and the seasonal factor is 0.92.using multiplicative model for seasonal adjustment, what is the seasonally adjusted figure for the quarter?
Year—–Quarter–Moving total of Unemployment Number(UN)–Trend——seasonal Percent
2000——–1
—————2——————4700—————————————4300—————–92%=0.92
—————3
—————4s=y/t
seasonal percentage=actual /trendit says second quarter of 2000 was 4700 i recorded as above and at this point trend was 4300 but seasonal percentage should be 1.1 why 0.92?
4700/4300=1.1 seasonal percentage
please explain it on formula because then i understand it.
This question is asking you to work backwards.
If the number without seasonality had been X, then the actual figure with seasonality would have been X x 0.92.
Since the actual figure is 4,700, then X x 0.92 = 4,700.Therefore X (the seasonally adjusted figure) = 4,700/0.92 = 5,109
(Do not just learn formulae. The examiner deliberately designs questions that test that you understand the topic rather than having just learned formulae.)
When i know formula and explained based on formula, i forget formula and automatically i solve question, it just for a starting point.
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