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Dear John,
I am doing my revision and can’t understand this question.From BPP revision book.
Q) Unemployment numbers actually recorded in a town for the second qua quaterrter of the year 2000 were 4700.
The underlying trend at this point was 4300 people and thr seasonal factor is 0.92. Using multiplicative model for seasonal adjustment, what is the seasonally-adjusted fingure(in whole numbers) for the quarter?Thank you in advance.
Regards,
Yoojiminey seasonal adjustment is another term used for trend and its calculated as follows
actual series=trend + seasonal variation
4700=y x 0.92
y=4700/0.92
y=5108.7H is forecasting its sales for next year using a combination of time series and regression analysis models. An analysis of past sales units has produced the following equation for the quarterly sales trend :
Y = 26x + 8850
Where the value of x represents the quarterly accounting period and the value of y represents the quarterly sales trend in units. Quarter 1 of next year will have a value of x of 25.
The quarterly seasonal variations have been measured using the multiplicative model are :
Quarter 1 -15%
Quarter 2 -5%
Quarter 3 +5%
Quarter 4 +15%Production is planned to occur at a constant rate throughout the year.
The company does not hold inventories at the end of any year.
The difference between the budgeted sales for quarter 1 and quarter 4 next year are what?
The answer given is 2940 units. Could you please explain me how that answer arrived?
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