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Obtain the trend values for the above data using 3-yearly moving averages.

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Question

Obtain the trend values for the above data using 3-yearly moving averages.

Sum
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Solution

Construct the following table for obtaining 3-yearly moving averages for the data in problem 7.

Year
t
Production
yt
3–yearly
moving total
3–yearly moving averages trend value
1976 0
1977 4 8 2.6667
1978 4 10 3.3333
1979 2 12 4
1980 6 16 5.3333
1981 8 19 6.3333
1982 5 22 7.3333
1983 9 18 6
1984 4 23 7.6667
1985 10 24 8
1986 10
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Measurement of Secular Trend
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Chapter 4: Time Series - Exercise 4.1 [Page 66]

RELATED QUESTIONS

Fit a trend line to the data in Problem 4 above by the method of least squares. Also, obtain the trend value for the index of industrial production for the year 1987.


Obtain the trend values for the data in using 4-yearly centered moving averages.

Year 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985
Index 0 2 3 3 2 4 5 6 7 10

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Year 1962 1963 1964 1965 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976
Production
(Million Barrels)
0 0 1 1 2 3 4 5 6 7 8 9 8 9 10

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ii. Plot the original time series and trend values obtained above on the same graph.


Choose the correct alternative :

We can use regression line for past data to forecast future data. We then use the line which_______.


State whether the following is True or False :

Graphical method of finding trend is very complicated and involves several calculations.


State whether the following is True or False :

Moving average method of finding trend is very complicated and involves several calculations.


State whether the following is True or False :

Least squares method of finding trend is very simple and does not involve any calculations.


Solve the following problem :

The following table shows the production of pig-iron and ferro- alloys (‘000 metric tonnes)

Year 1974 1975 1976 1977 1978 1979 1980 1981 1982
Production 0 4 9 9 8 5 4 8 10

Fit a trend line to the above data by graphical method.


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Obtain trend values for the following data using 5-yearly moving averages.

Year 1974 1975 1976 1977 1978 1979 1980 1981 1982
Production 0 4 9 9 8 5 4 8 10

Solve the following problem :

The percentage of girls’ enrollment in total enrollment for years 1960-2005 is shown in the following table.

Year 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Percentage 0 3 3 4 4 5 6 8 8 10

Fit a trend line to the above data by graphical method.


Solve the following problem :

Obtain trend values for the data in Problem 7 using 4-yearly moving averages.


Following data shows the number of boxes of cereal sold in years 1977 to 1984.

Year 1977 1978 1979 1980 1981 1982 1983 1984
No. of boxes in ten thousand 1 0 3 8 10 4 5 8

Fit a trend line to the above data by graphical method.


Solve the following problem :

Following table shows the number of traffic fatalities (in a state) resulting from drunken driving for years 1975 to 1983.

Year 1975 1976 1977 1978 1979 1980 1981 1982 1983
No. of deaths 0 6 3 8 2 9 4 5 10

Fit a trend line to the above data by graphical method.


Solve the following problem :

Fit a trend line to data in Problem 13 by the method of least squares.


Solve the following problem :

Obtain trend values for data in Problem 13 using 4-yearly moving averages.


Solve the following problem :

Fit a trend line to data in Problem 16 by the method of least squares.


Solve the following problem :

Obtain trend values for data in Problem 16 using 3-yearly moving averages.


Solve the following problem :

Following tables shows the wheat yield (‘000 tonnes) in India for years 1959 to 1968.

Year 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968
Yield 0 1 2 3 1 0 4 1 2 10

Fit a trend line to the above data by the method of least squares.


The complicated but efficient method of measuring trend of time series is ______


State whether the following statement is True or False:

The secular trend component of time series represents irregular variations


Complete the table using 4 yearly moving average method.

Year Production 4 yearly
moving
total
4 yearly
centered
total
4 yearly centered
moving average
(trend values)
2006 19  
    `square`    
2007 20   `square`
    72    
2008 17   142 17.75
    70    
2009 16   `square` 17
    `square`    
2010 17   133 `square`
    67    
2011 16   `square` `square`
    `square`    
2012 18   140 17.5
    72    
2013 17   147 18.375
    75    
2014 21  
       
2015 19  

The complicated but efficient method of measuring trend of time series is ______.


The following table shows gross capital information (in Crore ₹) for years 1966 to 1975:

Years 1966 1967 1968 1969 1970
Gross Capital information 20 25 25 30 35
Years 1971 1972 1973 1974 1975
Gross Capital information 30 45 40 55 65

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The publisher of a magazine wants to determine the rate of increase in the number of subscribers. The following table shows the subscription information for eight consecutive years:

Years 1976 1977 1978 1979
No. of subscribers
(in millions)
12 11 19 17
Years 1980 1981 1982 1983
No. of subscribers
(in millions)
19 18 20 23

Fit a trend line by graphical method.


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