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average seasonal variation(F2)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › average seasonal variation(F2)

  • This topic has 4 replies, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • July 2, 2016 at 10:48 am #324578
    Avatartahajaffri
    Member
    • Topics: 27
    • Replies: 24
    • ☆☆

    Hi sir john…how are you..i hope you will be fine..i have a question in my mind why it is necessary to calculate the average of seasonal variation…and why the sum of average seasonal variation(in additive model) should be equal to zero??what is reason behind it

    July 2, 2016 at 7:27 pm #324600
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    We calculate the average because from year to year the variation is not the same (in a perfect world it would be, but things are not perfect in the real world 🙂 )

    They should add up to zero because they are all averages and some are below zero (negative) and some are above zero (positive).

    July 2, 2016 at 9:35 pm #324608
    Avatartahajaffri
    Member
    • Topics: 27
    • Replies: 24
    • ☆☆

    thanks sir john.. 🙂

    July 2, 2016 at 9:36 pm #324609
    Avatartahajaffri
    Member
    • Topics: 27
    • Replies: 24
    • ☆☆

    what do you mean by perfect world and real world…??

    July 3, 2016 at 9:45 am #324617
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54839
    • ☆☆☆☆☆

    A perfect world is an ideal world where everything operates perfectly. In real life things don’t work perfectly.

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