Demand for a certain product is forecast to be 800 units per month,averaged over all 12 months of the year.The product follows a seasonal pattern,for which the January monthly index is 1.25.What is the seasonally-adjusted sales forecast for January?
A)640 units
B)798.75 units
C)801.25 units
D)1000 units
E)83.33 units

Question

Quizplus · Accepted Answer

The seasonally-adjusted sales forecast for January is calculated by multiplying the average monthly demand by the January index: 800 units * 1.25 = 1000 units.

Demand for a Certain Product Is Forecast to Be 800