Problem 6
The unemployment rate (UR) for PEI by quarter was asfollows:
                                   UR         T(Time)
Year   Quarter           Rate    For Regression
2018Â Â Â Q1Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 12.0Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 1
           Q2                  7.1                  2
           Q3                  8.2                  3
           Q4                  10.2                4
2019Â Â Â Q1Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 12.2Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â 5
           Q2                  6.9                  6
           Q3                  7.1                  7
           Q4                  9.9                  8
- Sketch this data on a graph. Is there seasonality in thedata?
- Use a four quarter moving average to determine the seasonalfactors for the four quarters.
- Calculate the four quarter moving average;
- Centre the data if necessary;
- Calculate the seasonal factors for each Quarter.
- Calculate the average seasonal factors for each quarter.
- What percentage is the rounding error in this calculation?
