Demand for Honda hybrids nationwide is forecast to be 600 cars per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the July monthly index is 1.25. What is the seasonally adjusted sales forecast for July?

Question

Quizplus · Accepted Answer

To calculate the seasonally adjusted sales forecast, we multiply the forecasted demand (600 cars) by the seasonal index for July (1.25).

Seasonally adjusted sales forecast for July = (600 cars) x (1.25) = 750 cars.

Therefore, the answer is choice A) 750 cars.

Demand for Honda Hybrids Nationwide Is Forecast to Be 600