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Instructions
Refer to the Table below. It provides quarterly output data of a company for four years (1998-2001) and its trend calculated through 4-quarter Moving Average Method:
Question 114
Plot the quarterly output and its trend values. Identify the number of times the trend curve intersects the output curve
Solution
To calculate the number of times graphs intersects, we can check number of times the difference of the two values changes sign.
We can also plot a graph to calculate number of times they intersect.
Trend curve insects output curve 6 times.
Check the number of times where the difference of the actual value and trend value change sign.
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