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Calculating seasonally adjusted figure for multiplicative model

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Calculating seasonally adjusted figure for multiplicative model

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  • October 3, 2014 at 3:16 am #203290
    Bhagat
    Participant
    • Topics: 17
    • Replies: 19
    • ☆

    Please assist me with the following question:

    Actual unemployment level for quarter 2 of year 2000 is recorded as 4700. The underlying trend up to this point is 4300. Given the seasonal factor of 0.92, what is the seasonally adjusted figure? Answer provided is

    5109 (nearest whole number)

    Please show me the steps to arrive at the given answet. Your help is much appreciated.

    October 3, 2014 at 7:50 am #203300
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54478
    • ☆☆☆☆☆

    A seasonal factor of 0.92 means that we would expect the figure to be only 0.92 x what it would have been without seasonality.

    So had there been no seasonality, we would expect actual unemployment to have been 4700 / 0.92 = 5,109

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