i. A typical monthly seasonal index of 107.0 indicates that sales (or whatever the variable is) are 7 percent above the annual average. 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

Statement (i) is correct as a seasonal index of 107.0 means that sales are 7 percent above the annual average. Statement (ii) is also correct as seasonal variation is indeed common in the retail and wholesale industries. However, statement (iii) is incorrect as a seasonal index of 103.7 for January means that sales for January are above the annual average (since it is above 100) and not below it.

I a Typical Monthly Seasonal Index of 107