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# List the steps in deseasonalizing a monthly time series.

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There are five steps in deseasonalizing a monthly time series:

The first step is to calculate a centered moving average for each month or quarter. Because of that, we will lose $12$ observations (monthly data) or $4$ observations (quarterly data).

The second step is to divide each observed $y_t$ value by the CMA to obtain seasonal ratios.

In the third step we have to average the seasonal ratios by month or quarter to get seasonal indexes.

In the fourth step the seasonal indexes for each month, quarter, is adjusted such that a sum of all them is $12$, or $4$.

And the fifth step to divide each $y_t$ by its seasonal index to get deseasonalized data.

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