(a) Production (lakh tonnes) over 8 years: 10, 12, 14, 16, 20, 22, 24, 26 — compute the 3-yearly moving average. (b) For the series 5, 7, 11, 17, 25, 31, 40, 50 — compute the 4-yearly centred moving average.
To smooth a time series and reveal its trend using odd-period (3-yearly) and even-period (4-yearly, centred) moving averages.
Applying it:
Blank working table (4-yearly centred MA):
| Year | Y | 4-yr MA (between) | Centred MA |
|---|---|---|---|
| 1 | 5 | ||
| 2 | 7 | ||
| 3 | 11 | ||
| 4 | 17 | ||
| 5 | 25 | ||
| 6 | 31 | ||
| 7 | 40 | ||
| 8 | 50 |
(a) 3-yearly MA (placed at years 2–7): 12.00, 14.00, 16.67, 19.33, 22.00, 24.00.
(b) 4-yearly centred MA:
| Year | Y | 4-yr MA (between) | Centred MA |
|---|---|---|---|
| 1 | 5 | ||
| 2 | 7 | 10.00 | |
| 3 | 11 | 15.00 | 12.500 |
| 4 | 17 | 21.00 | 18.000 |
| 5 | 25 | 28.25 | 24.625 |
| 6 | 31 | 36.50 | 32.375 |
| 7 | 40 | ||
| 8 | 50 |
The five 4-yearly moving averages are 10.00, 15.00, 21.00, 28.25, 36.50; centring successive pairs gives 12.50, 18.00, 24.625, 32.375 at years 3–6.
Both series show a steadily rising trend; the smoothed (moving-average) values increase monotonically, confirming an upward long-term movement.
(a) Fit a straight-line trend to the sales 10, 12, 14, 16, 20, 22, 24, 26 (2018–2025). (b) Fit a second-degree (parabolic) trend to the production 5, 7, 11, 17, 25.
To fit linear and parabolic trends by the method of least squares using coded time \(X\) (so that \(\sum X = 0\)).
Applying it:
Blank working table (linear):
| \(X\) | \(Y\) | \(X^2\) | \(XY\) |
|---|---|---|---|
| −7 | 10 | ||
| −5 | 12 | ||
| −3 | 14 | ||
| −1 | 16 | ||
| 1 | 20 | ||
| 3 | 22 | ||
| 5 | 24 | ||
| 7 | 26 | ||
| Σ |
(a) Linear:
| \(X\) | \(Y\) | \(X^2\) | \(XY\) |
|---|---|---|---|
| −7 | 10 | 49 | −70 |
| −5 | 12 | 25 | −60 |
| −3 | 14 | 9 | −42 |
| −1 | 16 | 1 | −16 |
| 1 | 20 | 1 | 20 |
| 3 | 22 | 9 | 66 |
| 5 | 24 | 25 | 120 |
| 7 | 26 | 49 | 182 |
| Σ | 144 | 168 | 200 |
\(a = 144/8 = 18\); \(b = 200/168 = 1.190\) per half-year. Trend: \(\hat Y = 18 + 1.190\,X\) (equivalently, a rise of about \(2.38\) per year).
(b) Parabola (\(X = -2,-1,0,1,2\)): \(\sum Y = 65,\; \sum X^2 = 10,\; \sum X^4 = 34,\; \sum XY = 50,\; \sum X^2Y = 144\).
\(b = 50/10 = 5\). From \(65 = 5a + 10c\) and \(144 = 10a + 34c\): \(c = 1,\; a = 11\). Trend: \(\hat Y = 11 + 5X + X^2\).
The linear trend is \(\hat Y = 18 + 1.190\,X\) (upward). The parabola \(\hat Y = 11 + 5X + X^2\) reproduces the data exactly (5, 7, 11, 17, 25), so growth is accelerating.
Determine the quarterly seasonal indices from three years of sales (₹ lakhs) by the method of simple averages.
| Year | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| 2023 | 60 | 80 | 72 | 68 |
| 2024 | 65 | 88 | 76 | 71 |
| 2025 | 70 | 92 | 80 | 78 |
To compute seasonal indices (summing to 400 for quarterly data) by averaging each quarter across years and expressing it relative to the grand mean.
Applying it:
Blank working table:
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Quarter average | ||||
| Seasonal index |
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Quarter average | 65.00 | 86.67 | 76.00 | 72.33 |
| Seasonal index | 86.67 | 115.56 | 101.33 | 96.44 |
Grand mean \(= (65 + 86.67 + 76 + 72.33)/4 = 75\); indices sum to 400.
Seasonal indices are Q1 = 86.67, Q2 = 115.56, Q3 = 101.33, Q4 = 96.44. Sales peak in Q2 and are weakest in Q1.
Using the same quarterly data as Experiment 3, obtain the seasonal indices by the ratio-to-moving- average method.
To remove trend by a 4-quarter centred moving average and isolate the seasonal component as the ratio of actual value to moving average.
Applying it:
Blank working table (averaged ratios by quarter):
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Mean ratio | ||||
| Adjusted index |
Centred moving averages (Q3 2023 → Q2 2025): 70.625, 72.25, 73.75, 74.625, 75.625, 76.75, 77.75, 79.125. The corresponding \((Y/\text{CMA})\times 100\) ratios average by quarter as below (raw sum 400.72, adjustment factor \(400/400.72 = 0.9982\)):
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Mean ratio | 89.08 | 117.10 | 101.22 | 93.31 |
| Adjusted index | 88.93 | 116.89 | 101.04 | 93.15 |
Ratio-to-moving-average seasonal indices are Q1 = 88.93, Q2 = 116.89, Q3 = 101.04, Q4 = 93.15 (sum 400) — the same seasonal shape as the simple-average method, but trend-adjusted.
For the same data, obtain the seasonal indices by the ratio-to-trend method.
To fit a linear trend to the yearly averages, read off the quarterly trend values, and express each actual value as a percentage of its trend.
Applying it:
Blank working table:
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Mean ratio | ||||
| Seasonal index |
Yearly averages 70, 75, 80 give the trend \(\hat Y = 75 + 5X\) (per-quarter increment 1.25). The quarterly ratios average by quarter as:
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Mean ratio | 88.85 | 116.51 | 100.56 | 94.08 |
| Seasonal index | 88.85 | 116.51 | 100.56 | 94.08 |
The ratios already sum to 400, so no further adjustment is needed.
Ratio-to-trend seasonal indices are Q1 = 88.85, Q2 = 116.51, Q3 = 100.56, Q4 = 94.08, in close agreement with the ratio-to-moving-average result.
For the same data, obtain the seasonal indices by Pearson's method of link relatives.
To compute link relatives, convert them to chain relatives, correct for the trend carried over one cycle, and express the corrected values as seasonal indices.
Applying it:
Blank working table:
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Avg link relative | ||||
| Chain relative | ||||
| Corrected CR | ||||
| Seasonal index |
Return CR of Q1 \(= (97.09\times 111.36)/100 = 108.12\), so \(d = (108.12-100)/4 = 2.03\); mean corrected CR \(= 112.41\).
| Q1 | Q2 | Q3 | Q4 | |
|---|---|---|---|---|
| Avg link relative | 97.09 | 133.38 | 87.77 | 95.12 |
| Chain relative | 100.00 | 133.38 | 117.07 | 111.36 |
| Corrected CR | 100.00 | 131.35 | 113.01 | 105.27 |
| Seasonal index | 88.96 | 116.85 | 100.54 | 93.65 |
Link-relative seasonal indices are Q1 = 88.96, Q2 = 116.85, Q3 = 100.54, Q4 = 93.65 (sum 400). All four methods (Experiments 3–6) agree: Q2 is the peak season and Q1 the trough.
Prices in the base year \(p_0\): 5, 8, 10, 12 and in the current year \(p_1\): 6, 10, 14, 15. Compute the simple aggregate and simple average-of-relatives price index.
To construct unweighted (simple) index numbers by the aggregate and the average-of-relatives methods.
Applying it:
Blank working table:
| Item | \(p_0\) | \(p_1\) | \((p_1/p_0)\times100\) |
|---|---|---|---|
| 1 | 5 | 6 | |
| 2 | 8 | 10 | |
| 3 | 10 | 14 | |
| 4 | 12 | 15 | |
| Σ |
| Item | \(p_0\) | \(p_1\) | \((p_1/p_0)\times100\) |
|---|---|---|---|
| 1 | 5 | 6 | 120 |
| 2 | 8 | 10 | 125 |
| 3 | 10 | 14 | 140 |
| 4 | 12 | 15 | 125 |
| Σ | 35 | 45 | 510 |
Simple aggregate \(= (45/35)\times 100 = 128.57\); average of relatives \(= 510/4 = 127.5\).
The price level rose about 28.6 % (aggregate) or 27.5 % (average of relatives) over the base year.
Compute Laspeyres, Paasche, Marshall–Edgeworth, Fisher and Bowley price index numbers from:
| Item | \(p_0\) | \(q_0\) | \(p_1\) | \(q_1\) |
|---|---|---|---|---|
| A | 4 | 10 | 6 | 12 |
| B | 5 | 15 | 8 | 14 |
| C | 10 | 5 | 12 | 4 |
To construct all the standard weighted price index numbers and compare them.
Applying it:
Blank working table:
| Item | \(p_0q_0\) | \(p_1q_0\) | \(p_0q_1\) | \(p_1q_1\) |
|---|---|---|---|---|
| A | ||||
| B | ||||
| C | ||||
| Σ |
| Item | \(p_0q_0\) | \(p_1q_0\) | \(p_0q_1\) | \(p_1q_1\) |
|---|---|---|---|---|
| A | 40 | 60 | 48 | 72 |
| B | 75 | 120 | 70 | 112 |
| C | 50 | 60 | 40 | 48 |
| Σ | 165 | 240 | 158 | 232 |
All weighted indices cluster near 146, indicating a price rise of about 46 %. Fisher's index (146.14) is the geometric "ideal" figure.
Using the aggregates of Experiment 8, verify that Fisher's ideal index satisfies the time-reversal and factor-reversal tests.
To check the two consistency tests: TRT \((P_{01}\times P_{10} = 1)\) and FRT \((P_{01}\times Q_{01} = V_{01})\).
Applying it:
Blank working table:
| Quantity | Value |
|---|---|
| Fisher price index \(P_F\) | |
| Fisher quantity index \(Q_F\) | |
| \(P_F\times Q_F\) | |
| Value index \(V = \sum p_1q_1/\sum p_0q_0\) |
TRT: \(P_{01}^F\times P_{10}^F = \sqrt{\tfrac{240}{165}\cdot\tfrac{232}{158}}\cdot\sqrt{\tfrac{158}{232}\cdot\tfrac{165}{240}} = 1\) ✓.
| Quantity | Value |
|---|---|
| Fisher price index \(P_F\) | 1.4614 |
| Fisher quantity index \(Q_F = \sqrt{(158/165)(232/240)}\) | 0.9621 |
| \(P_F\times Q_F\) | 1.406 |
| Value index \(V = 232/165\) | 1.406 |
Fisher's index satisfies both the time-reversal test (\(P_{01}\times P_{10} = 1\)) and the factor-reversal test (\(P_F\times Q_F = V = 1.406\)); hence it is the "ideal" index.
Compute the crude death rate, age-specific death rates and standardised death rates (direct and indirect) from:
| Age | Population \(P_x\) | Deaths \(D_x\) |
|---|---|---|
| 0–14 | 20 000 | 100 |
| 15–59 | 50 000 | 250 |
| 60+ | 30 000 | 900 |
| Total | 100 000 | 1 250 |
To compute CDR, ASDRs and the standardised death rates using a standard population (30 000, 55 000, 15 000) and standard ASDRs (4, 6, 25 per 1 000, standard CDR 8).
Applying it:
Blank working table:
| Age | ASDR (per 1000) | \(P_x^{std}\) | \(P_x^{std}\times m_x\) |
|---|---|---|---|
| 0–14 | 30 000 | ||
| 15–59 | 55 000 | ||
| 60+ | 15 000 | ||
| Total | — | 100 000 |
CDR \(= (1250/100000)\times 1000 = 12.5\) per 1 000. ASDRs \(= 5,\; 5,\; 30\) per 1 000.
| Age | ASDR (per 1000) | \(P_x^{std}\) | \(P_x^{std}\times m_x\) |
|---|---|---|---|
| 0–14 | 5 | 30 000 | 150 |
| 15–59 | 5 | 55 000 | 275 |
| 60+ | 30 | 15 000 | 450 |
| Total | — | 100 000 | 875 |
Direct SDR \(= 875/100000\times 1000 = 8.75\) per 1 000.
Indirect: expected deaths \(= 20000(0.004)+50000(0.006)+30000(0.025) = 80+300+750 = 1130\); SMR \(= 1250/1130 = 1.106\); indirect SDR \(= 1.106\times 8 = 8.85\) per 1 000.
CDR = 12.5 per 1 000; after standardisation the death rate is about 8.75 (direct) or 8.85 (indirect) per 1 000 — the crude rate overstates mortality because this population is older than the standard.
Total population 1 000 000; live births 18 000; female population aged 15–49 is 250 000. The age-specific fertility rates (per 1 000 women) for the seven 5-year groups 15–19, …, 45–49 are 40, 120, 140, 80, 40, 10, 2. Compute CBR, GFR and TFR.
To compute the crude birth rate, general fertility rate and total fertility rate.
Applying it:
Blank working table:
| Rate | Value |
|---|---|
| CBR (per 1000) | |
| GFR (per 1000 women) | |
| \(\sum\)ASFR | |
| TFR (children/woman) |
| Rate | Value |
|---|---|
| CBR \(= (18000/1000000)\times 1000\) | 18 |
| GFR \(= (18000/250000)\times 1000\) | 72 |
| \(\sum\)ASFR \(= 40+120+140+80+40+10+2\) | 432 |
| TFR \(= 432\times 5/1000\) | 2.16 |
CBR = 18 per 1 000, GFR = 72 per 1 000 women, TFR = 2.16 children per woman — close to the replacement level of about 2.1.
From Experiment 11 (TFR = 2.16), with a female-birth proportion of 0.487 and a mean survival probability of 0.92 to the mean age of childbearing, compute the gross and net reproduction rates and Pearl's vital index (deaths 8 000).
To compute GRR, NRR and Pearl's vital index and interpret the replacement level.
Applying it:
Blank working table:
| Measure | Value |
|---|---|
| GRR (daughters/woman) | |
| NRR | |
| Pearl's vital index |
| Measure | Value |
|---|---|
| GRR \(= 2.16\times 0.487\) | 1.052 |
| NRR \(= 1.052\times 0.92\) | 0.968 |
| Pearl's vital index \(= (18000/8000)\times 100\) | 225 |
GRR = 1.052 daughters per woman, but NRR = 0.968 < 1, so the population fails to fully replace itself and will decline in the long run despite a vital index of 225.
Given the survivorship column \(l_x\), construct the remaining life-table columns (\(d_x,\; q_x,\; L_x\)) and outline the computation of \(T_x\) and \(e_x^0\).
| Age \(x\) | \(l_x\) |
|---|---|
| 0 | 100 000 |
| 1 | 98 800 |
| 5 | 98 300 |
| 10 | 98 000 |
| 15 | 97 500 |
| 20 | 97 000 |
To build a life table from the survivorship column and compute the expectation of life \(e_x^0 = T_x/l_x\).
Applying it:
Blank working table:
| \(x\) | \(l_x\) | \(d_x\) | \(q_x\) | \(L_x\ (\approx)\) |
|---|---|---|---|---|
| 0 | 100 000 | |||
| 1 | 98 800 | |||
| 5 | 98 300 | |||
| 10 | 98 000 | |||
| 15 | 97 500 |
| \(x\) | \(l_x\) | \(d_x\) | \(q_x\) | \(L_x\ (\approx)\) |
|---|---|---|---|---|
| 0 | 100 000 | 1 200 | 0.0120 | 99 400 |
| 1 | 98 800 | 500 | 0.0051 | 98 550 |
| 5 | 98 300 | 300 | 0.0031 | 98 150 |
| 10 | 98 000 | 500 | 0.0051 | 97 750 |
| 15 | 97 500 | 500 | 0.0051 | 97 250 |
(\(L_x\) is shown as the central survivorship \((l_x+l_{x+n})/2\); for the wider age intervals it would be multiplied by the interval width \(n\) to obtain person-years.) Cumulating \(L_x\) from the oldest age gives \(T_x\), and \(e_x^0 = T_x/l_x\).
The completed columns give the probability of dying \(q_x\) at each age and, through \(T_x\), the expectation of life \(e_x^0 = T_x/l_x\) — the key output of the life table.