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Forums › ACCA Forums › ACCA MA Management Accounting Forums › Seasonal Variation
In a time series analysis, the additive model is used to forecast sales and the following seasonal variations
apply:
Quarter 1 2 3 4
Seasonal variation +5.8 -8.4 +10.2 ?
The seasonal variation for quarter 4 is:
A +7.6
B -8.1
C -7.6
D +8.1
How to get answer C
Let me get the answer .. Thank you
If you sum the variations given you should get 7.6.
5.8+10.2-8.4=7.6.
The seasonal variations should add up to zero.Therefore,the final seasonal variation must equal -7.6.