Which of the following is not a step in Forecasting Seasonality?
A) Calculate a seasonal index for each season of each year
B) Divide this year's average seasonal demand by each average seasonal index
C) Average the indexes by season
D) Forecast demand for the next year and divide by the number of seasons
E) Calculate the average demand per season

Question

Quizplus · Accepted Answer

B) Divide this year's average seasonal demand by each average seasonal index is not a step in forecasting seasonality. Typically, seasonal indexes are used to adjust forecasts or historical data, not derived by dividing the year's average demand by these indexes.

Which of the Following Is Not a Step in Forecasting