Question

Use the Bricks data from aus_production (Australian quarterly clay brick production 1956-2005) for this exercise. (a) Use an STL decomposition to calculate the trend-cycle and seasonal indices. (Experiment with having fixed or changing seasonality.) (b) Use a naive method to produce forecasts of the seasonally adjusted data. (c) Use decomposition_model() to reseasonalise the results, giving forecasts for the original data. (d) Do the residuals look uncorrelated?

          Use the Bricks data from aus_production (Australian quarterly clay brick production 1956-2005) for this exercise.
(a) Use an STL decomposition to calculate the trend-cycle and seasonal indices. (Experiment with having fixed or changing seasonality.)
(b) Use a naive method to produce forecasts of the seasonally adjusted data.
(c) Use decomposition_model() to reseasonalise the results, giving forecasts for the original data.
(d) Do the residuals look uncorrelated?
        
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Use the Bricks data from ausproduction (Australian quarterly clay brick production 1956-2005) for this exercise.
(a) Use an STL decomposition to calculate the trend-cycle and seasonal indices. (Experiment with having fixed or changing seasonality.)
(b) Use a naive method to produce forecasts of the seasonally adjusted data.
(c) Use decompositionmodel() to reseasonalise the results, giving forecasts for the original data.
(d) Do the residuals look uncorrelated?

Added by Kate M.

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Introductory Econometrics
Introductory Econometrics
Jeffrey M. Wooldridge 6th Edition
Chapter 18
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Transcript

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0:00 Hello everyone.
00:01 In this lesson, we use the bricks data from oz production to explore quarterly australian clay brick production for 1956 to 2005.
00:08 So we'll apply stl decomposition, produced forecasts using a naive method, re -seasonalize them with decomposition model function, and check -it residuals are uncorrelated.
00:18 So let's begin.
00:19 We begin by decomposing the series into trend season and remainder components.
00:23 The stl function allows us to test fixed or changing seasonality to capture stable or evolving seasonal patterns in brick production.
00:31 The naive models assumes that the latest observed value continues forward...
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