X-11 Census Method II Seasonal Adjustment - Result Tables Computed by the X-11 Method
The computations performed by the X-11 procedure are best discussed in the context of the results tables that are reported. The adjustment process is divided into seven major steps, which are customarily labeled with consecutive letters A through G.
- A. Prior adjustment (monthly seasonal adjustment only).
- Before any seasonal adjustment is performed on the monthly time series, various prior user-defined adjustments can be incorporated. You can specify a second series that contains prior adjustment factors; the values in that series will either be subtracted (additive model) from the original series, or the original series will be divided by these values (multiplicative model). For multiplicative models, user-specified trading-day adjustment weights can also be specified. These weights will be used to adjust the monthly observations depending on the number of respective trading-days represented by the observation.
B. Preliminary estimation of trading-day variation (monthly X-11) and weights. Next, preliminary trading-day adjustment factors (monthly X-11 only) and weights for reducing the effect of extreme observations are computed.
C. Final estimation of trading-day variation and irregular weights (monthly X-11). The adjustments and weights computed in B above are then used to derive improved trend-cycle and seasonal estimates. These improved estimates are used to compute the final trading-day factors (monthly X-11 only) and weights.
- D. Final estimation of seasonal factors, trend-cycle, irregular, and seasonally adjusted series.
- The final trading-day factors and weights computed in C above are used to compute the final estimates of the components.
- E. Modified original, seasonally adjusted, and irregular series.
- The original and final seasonally adjusted series, and the irregular component are modified for extremes. The resulting modified series allow you to examine the stability of the seasonal adjustment.
- F. Month (quarter) for cyclical dominance (MCD, QCD), moving average, and summary measures.
- In this part of the computations, various summary measures (see below) are computed to allow the user to examine the relative importance of the different components, the average fluctuation from month-to-month (quarter-to-quarter), the average number of consecutive changes in the same direction (average number of runs), etc.
- G. Charts.
- Finally, STATISTICA computes various charts (graphs) to summarize the results. For example, the final seasonally adjusted series will be plotted, in chronological order, or by month (see below).
For a specific description of the tables and charts, see Specific Description of all Results Tables Computed by the X-11 method.