Marketing analyst, Sharon Wilson, uses seasonal adjustments to improve the accuracy of her time series projections for the Ice Cream Palace Company. Given the following data, determine the seasonal index for the first quarter. (Within errors of rounding)

Average Quarterly Sales - 78.69

Question

Marketing analyst, Sharon Wilson, uses seasonal adjustments to improve the accuracy of her time series projections for the Ice Cream Palace Company. Given the following data, determine the seasonal index for the first quarter. (Within errors of rounding)

Average Quarterly Sales - 78.69

Quizplus · Accepted Answer

To calculate the seasonal index for the first quarter, we need to use the following formula:

Seasonal index for Q1 = (Average sales for Q1 / Average sales for all quarters) * 4

The average sales for Q1 are given as 50.12. The average sales for all quarters are given as 78.69. Substituting these values in the formula, we get:

Seasonal index for Q1 = (50.12 / 78.69) * 4 = 0.8439

Rounding this value to two decimal places, we get 0.84, which is closest to option C) .84. Therefore, C) is the best choice for the seasonal index for the first quarter.

Marketing Analyst, Sharon Wilson, Uses Seasonal Adjustments to Improve the Accuracy