Exhibit 18-1
Below you are given the first five values of a quarterly time series. The multiplicative model is appropriate and a four-quarter moving average will be used.
-Refer to Exhibit 18-1. An estimate of the trend component times the cyclical component (T₂C_t) for Quarter 3 of Year 1, when a four-quarter moving average is used, is

Question

Exhibit 18-1
Below you are given the first five values of a quarterly time series. The multiplicative model is appropriate and a four-quarter moving average will be used. Exhibit 18-1 Below you are given the first five values of a quarterly time series. The multiplicative model is appropriate and a four-quarter moving average will be used. -Refer to Exhibit 18-1. An estimate of the trend component times the cyclical component (T<sub>2</sub>C<sub>t</sub>) for Quarter 3 of Year 1, when a four-quarter moving average is used, is A) 24 B) 25 C) 26 D) 28

-Refer to Exhibit 18-1. An estimate of the trend component times the cyclical component (T₂C_t) for Quarter 3 of Year 1, when a four-quarter moving average is used, is

Quizplus · Accepted Answer

The correct answer is B. The trend component times the cyclical component (T₂C_t) for Quarter 3 of Year 1, when a four-quarter moving average is used, is 25. This is calculated by multiplying the trend component for Quarter 3 of Year 1 (5) by the cyclical component for Quarter 3 of Year 1 (5).

Exhibit 18-1 Below You Are Given the First Five Values of a of a Quarterly