ACF & Time Series Decomposition

To complete this assignment you need series Median usual weekly nominal earnings (second quartile): Wage and salary workers: Bachelor’s degree and higher: 25 years and over mwe.csv Download mwe.csv.

1. Build an acf plot for the series. Explain what the acf is indicating. Are you observing any trend/seasonality? (3 points)

2. Using classical decomposition(additive and multiplicative) to calculate the trend, seasonal indices, and the remainder.

3. Please explain the type of trend you are observing on the Median usual weekly nominal earnings (second quartile) (increasing or decreasing). Explain what seasonal indices indicate? Are you observing any seasonality.

4. Which decomposition better fits your assigned variable?