Seasonal adjustment A) is rarely used. B) is a common characteristic of macroeconomic time series in wide use. C) should never be used. D) is not used by modern macroeconomists.
Added by David W.
Close
Step 1
Step 1: Seasonal adjustment is a common practice in economics to remove the effects of seasonal variations from data. Show more…
Show all steps
Your feedback will help us improve your experience
Nidhi Singhi and 71 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
20) Which of the following is not true? A) When a series has the same average growth rate from period to period, then it can be approximated by including trend in a regression. B) Dummy variables can be used to address the problem of seasonality in regression models. C) Yt = β0 + β1St + β1St-1 + β2St-2 + β3St-3 + Ut, it is possible to estimate the long-run effect of a change in St on Yt. D) Serial correlation of the error term in time series regression invalidates the estimates and t-values of the estimates. E) Including a time trend in a time series regression is equivalent to detrending the dependent variable but not the independent variables.
Nidhi S.
(a) Suppose that monthly data on some time series variable exhibits a clear upward trend but no seasonality. You decide to use a moving average, with any appropriate span. Will there tend to be a systematic bias in your forecasts? Explain why or why not. (b) Under what circumstances can inventory be used as a hedge against inflation? (c) Provide an example of when you might want to take a stratified random sample instead of a simple random sample and explain what the advantages of a stratified sample might be. (d) Do you agree with the statement that nonresponse errors can be overcome with larger samples? If you agree, explain why. If you disagree, provide an example that backs up your opinion. (e) When, if ever, is it appropriate to use the standard normal distribution as a substitute for the t distribution with n – 1 degrees of freedom in estimating a population mean?
Sheryl E.
The exponential smoothing method of forecasting is the most appropriate method for time series that exhibit: A. irregularity. B. seasonality. C. a constant downward trend. D. a constant upward trend. 1. The seasonal component in a time series reflects a long-term, relatively smooth pattern or direction. True False 2. Seasonality is a time-series component. True False 3. Which of the following components describe the up and down movements of a time series that vary both in length and in intensity? A. the cyclical component B. the trend component C. the seasonal component D. the irregular component 4. In which component of the time series will the effect of an unpredictable, rare event be contained? A. the seasonal component B. the irregular component C. the cyclical component D. the trend component 5. The irregular component of a time series exhibits a tendency to grow or decrease rather steadily over long periods of time. True False 6. We can smooth a time series using the method of moving averages, based on the idea that any large irregular component at any point in time will exert a smaller effect if we average the point with its immediate neighbors. True False 7. An apartment complex manager randomly selects 10 buildings from the complex's 30 buildings, and then interviews one household member from each apartment in the 10 buildings. This is an example of cluster sampling. True False 8. The Holt-Winters Exponential Smoothing procedure allows only the trend component in a time series. True False 9. Simple exponential smoothing provides a forecast based on a weighted average of current and past values. True False 10. If a time series is rather smooth, we would use a large value for the smoothing constant α in order to give more weight to the most recent observation. True False 11. The exponential smoothing method of forecasting is the most appropriate method for time series that exhibit: A. irregularity. B. seasonality. C. a constant downward trend. D. a constant upward trend.
Sri K.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD