Question 1 The table below shows the total weekly fee income

Question 1 The table below shows the total weekly fee income for your bank in your country for the last three months of 2013. a) Calculate a three - quarter moving average to identify the trend of the fee income for the three year period. b) Calculate the seasonal factors and use these to seasonally adjust the original fee income data.

Solution

a)

Adjustment = Grand Average with opposite sign.

Weeks	Income	4-Quartely Moving Total	Moving total of pairs	Moving Average
Oct-01	200
2	260
		1195
3	285		2470	308.75
		1275
4	450		2605	325.625
		1330
Nov-01	280		2708	338.5
		1378
2	315		2798	349.75
		1420
3	333		2889	361.125
		1469
4	492		2998	374.75
		1529
Dec-01	329		3131	391.375
		1602
2	375		3233	404.125
		1631
3	406
4	521