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Hi everyone,
Today, while doing some excercise in Management Accounting, I met difficulty in this question. So, I need your assistance. Thank you very much!
Unemployment numbers actually recorded in a town for the second quarter of the year 2000 were 4,700. The underlying trend at this point was 4,300 people and the seasonal factor is 0.92.
Using the multiplicative model for seasonal adjustment, what is the seasonally-adjusted figure (in whole numbers) for the quarter?
A. 5,109
B. 5,068
C. 3,956
D. 3,932The answer is A. But I don’t actually understand why that.
Who can explain to me the difference between two numbers: 4,700 and 4,300? Many thanks to all you! 🙂
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