Asked by TANIE ETIENNE on Jun 28, 2024
Verified
A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three previous July values were 110, 150, and 130. The average over all months is 190. The approximate seasonal index for July is
A) 0.487.
B) 0.684.
C) 1.462.
D) 2.053.
E) cannot be calculated with the information given.
Seasonal Index
A numerical value or coefficient that adjusts data for seasonal variations, making trends clearer over time.
Monthly Series
A sequence of data points or observations recorded or collected monthly, often used in economic, financial, or performance analysis.
- Calculate seasonal indices and understand their application in seasonal adjustment.
Verified Answer
AT
April TennantJun 30, 2024
Final Answer :
B
Explanation :
The seasonal index for July is calculated by averaging the July values and then dividing by the overall average. The average for July is (110 + 150 + 130) / 3 = 390 / 3 = 130. The overall average is 190. Therefore, the seasonal index for July is 130 / 190 = 0.684.
Learning Objectives
- Calculate seasonal indices and understand their application in seasonal adjustment.
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