Best Linear Unbiased Estimate using Buys-Ballot Procedure when Trend-Cycle Component is Linear

Authors

Ifeanyi S. wueze, Central Bank of Nigeria
Nwogu C. Eleazar, Central Bank of Nigeria
Jude C. Ajaraogu, Central Bank of Nigeria

Keywords

Best linear unbiased Estimator, Buys-Ballot derived variables, stationarity, minimum variance, Moving Average Process of order one.

Abstract

The Best linear unbiased estimate (BLUE) of Buys-Ballot estimates when trend-cycle component is linear are discussed in this paper. The estimates are those proposed by Iwueze and Nwogu (2004). Discussed are the Chain Based Estimation (CBE) method and the Fixed Based Estimation (FBE) method. The variates for the CBE method were found to have constant mean and variance but are correlated with only one significant autocorrelation coefficient at lag one. The variates for the FBE method were found to have constant mean, non-constant variance but with constant autocorrelation coefficient at all lags . Because the CBE variates exhibit stationarity, Best Linear unbiased estimators of the slope and intercept were derived. Numerical examples were used to illustrate the methods.

Publication Title

JAS

Issue

Number 1

Volume

Vol. 2

Recommended Citation

wueze, Ifeanyi S.; Eleazar, Nwogu C.; and Ajaraogu, Jude C. (2011) "Best Linear Unbiased Estimate using Buys-Ballot Procedure when Trend-Cycle Component is Linear," CBN Journal of Applied Statistics (JAS): Vol. 2: No. 1, Article 2.
Available at: https://dc.cbn.gov.ng/jas/vol2/iss1/2