You are given the following information on the seasonal-irregular component values for a quarterly time series: The seasonal index for Quarter 1 is
A).997
B)1.18
C)4

Question

You are given the following information on the seasonal-irregular component values for a quarterly time series:  The seasonal index for Quarter 1 is
A).997 
B)1.18 
C)4

Quizplus · Accepted Answer

The seasonal index represents the average deviation from the overall mean for each quarter. A value greater than 1 indicates that the selected quarter experiences higher demand compared to the overall mean, while a value less than 1 indicates lower demand. Therefore, based on the options given, the best choice for the seasonal index would be 1.18, as it represents an increase in demand during Quarter 1.

You Are Given the Following Information on the Seasonal-Irregular Component