In determining weekly seasonal indexes for gas consumption,the sum of the 52 means for gas consumption as a percentage of the moving average is 5050.To get the seasonal indexes,each weekly mean is to be multiplied by:
A)5200 / 5050
B)(5200 + 5050)/ 52
C)(5050 + 52)/ 5200
D)5050 / 5200

Question

Quizplus · Accepted Answer

To normalize the seasonal indexes so that their sum equals the number of periods in a year (which is 5200% for 52 weeks, assuming each week is 100%), each weekly mean percentage (summing to 5050) needs to be adjusted by a factor that scales the total to 5200. This is achieved by multiplying each mean by the ratio of the desired total (5200) to the actual total (5050), hence 5200 / 5050.

In Determining Weekly Seasonal Indexes for Gas Consumption,the Sum of the 52