Lecture Notes Ch.
5 Examples 2 and 3 combined:
Year Quarter 1 Quarter 2 Quarter 3 Quarter 4
2015 78 49 69 112
2016 96 67 88 134
2017 115 92 102 149
2018 137 104 128 170
Year Quarter Quarterly Sales 4-period moving Centered Seasonal Variation
(in million) (y) Average Moving Average (t) 𝒔=𝒚−𝒕
2015 1 78
2 49
3 69
4 112
2016 1 96
2 67
3 88
4 134
2017 1 115
2 92
3 102
4 149
2018 1 137
2 104
3 128
4 170
Seasonal Variation
Seasonal Variation (s) Average of s
by Quarter (3 dp)
Quarter 1
Quarter 2
Quarter 3
Quarter 4
Adjustment =
Year Quarter Quarterly Sales Centered Seasonal Variation Predicted Error for
(in million) (y) Moving Average (t) by Quarter Quarterly Sales Prediction
2015 1 78
2 49
3 69
4 112
2016 1 96
2 67
3 88
4 134
2017 1 115
2 92
3 102
4 149
2018 1 137
2 104
3 128
4 170