i. In the final step, using the ratio-to-moving-average method on quarterly data, the total of the modified means should theoretically be equal to 400 because the average of should be 100. ii. Seasonal variation is quite common in the retail and wholesale industries.
iii. A typical seasonal index of 103.7 for January indicates that sales for January are below the annual average.
A) (i), (ii), and (iii) are all correct statements.
B) (i) and (ii) are correct statements but not (iii).
C) (i) and (iii) are correct statements but not (ii).
D) (ii) and (iii) are correct statements but not (i).
E) (i), (ii), and (iii) are all false statements.

Question

Quizplus · Accepted Answer

- The ratio-to-moving-average method is used to adjust a series for seasonal variation. When quarterly data is used, the sum of the seasonal indices over one year should theoretically equal 400, because the average seasonal index should be 100 for each quarter, making statement (i) correct.- Seasonal variation is indeed common in industries such as retail and wholesale, where sales can be significantly influenced by the time of year, making statement (ii) correct.- A typical seasonal index of 103.7 for January indicates that sales for January are above the annual average, not below. Seasonal indices represent how much the period in question deviates from the average or baseline. An index over 100 indicates higher activity than the average, making statement (iii) incorrect.

I in the Final Step, Using the Ratio-To-Moving-Average Method on Quarterly