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Forecasting

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Forecasting

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 24, 2017 at 11:57 am #369277
    sawyunandar
    Member
    • Topics: 22
    • Replies: 9
    • ☆

    I think the formula is Y/T=S. But why 4700 is divided by 0.9?

    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 3,932
    B 3,956
    C 5,068
    D 5,109

    January 24, 2017 at 2:13 pm #369299
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54711
    • ☆☆☆☆☆

    It is divided by 0.92, not 0.9

    Since the actual is 0.92 times the trend figure when doing the original calculations, then if the actual turns out to be 4,700 then if there had been no seasonality you would have expected the actual figure to have been 4,700/0.92.

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