Question

A division of climatic change is interested in analysing the pattern of the CO2 concentrations in the air of a particular state in past years and then forecasting the CO2 concentrations for the upcoming years. The monthly mean CO2 concentrations ppm (parts per million) mixing ratio in dry air from January 2006 through December 2019 were recorded. The following monthly data are given in the following table for past 14 years:

Month 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
January 299.16 299.62 300.60 301.67 303.71 305.00 306.77 308.32 309.90 310.41 312.87 313.88 315.04 316.33
February 299.94 300.40 301.60 302.17 304.23 305.63 307.26 309.41 310.70 311.68 313.59 314.62 315.70 316.82
March 300.41 300.87 302.57 303.86 305.54 306.93 309.10 310.69 311.70 312.04 314.11 316.23 316.38 318.29
April 301.72 302.18 303.72 305.07 306.79 307.95 309.88 311.51 312.65 314.27 316.07 316.62 318.38 319.91
May 302.13 302.92 303.68 305.82 306.95 308.05 310.47 312.02 313.28 314.92 316.38 317.53 318.93 319.41
June 301.09 302.43 303.17 305.12 307.00 308.27 310.31 311.54 312.42 314.40 315.78 316.87 318.26 318.74
July 300.10 300.85 301.96 303.81 305.37 306.64 308.41 309.88 311.02 313.16 313.96 315.00 316.44 316.92
August 298.14 299.01 299.80 301.56 303.47 304.68 306.74 307.75 308.97 311.11 311.71 312.86 314.55 315.03
September 296.36 297.51 297.98 300.30 301.46 302.77 305.07 306.05 306.84 309.11 309.86 311.55 313.21 313.69
October 296.29 297.41 297.57 300.22 301.29 303.09 305.07 306.13 307.00 309.15 310.13 311.57 312.67 313.15
November 297.23 298.25 299.20 301.37 302.76 304.29 306.22 307.45 308.20 310.38 311.84 313.11 314.09 314.57
December 298.55 299.97 300.58 302.49 303.80 305.76 307.38 308.85 309.63 312.02 313.32 314.49 315.27 315.75

a) Compute the seasonal indices using ratio to moving average method.
b) Obtain the deseasonalised values and then fit a linear trend line to the average annual CO2 concentrations using least squares method.
c) Convert the annual least-squared trend equation to a monthly trend equation.
d) Use the monthly trend equation and seasonal indices to forecast the CO2 concentrations for all twelve months of 2021.
e) Plot the original data, deseasonalised data and trend values.

11 Mar 2022
Answer :
Word Count : 441
This is a time series analysis problem requiring seasonal adjustment, trend fitting, and forecasting. I'll follow these steps: 1. Compute Seasonal Indices using the Ratio to Moving Average Method 2. Obtain Deseasonalized Values 3. Fit a Linear Trend Line using Least Squares 4. Convert the Annual Trend to a Monthly Trend Equation 5. Forecast CO₂ Concentrations for 2021 6. Plot the Original Data, Deseasonalized Data, and Trend Values I'll start by processing the ___ ______ _____ ______ _________ ____ ___ ____ ____ __________.
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