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hi
are all seasonal variation s additions are equal to zero or only additive model like this? but multiplicative?You have obviously not watch the free lectures on this 🙂
With multiplicative, since the variations are more or less than 100%, they should add up to 400.
Calculate the seasonally adjusted demand for quarter 2 using the multiplicative model.
Quarter Original data Seasonal factor
1 300,000 1.40
2 330,000 0.78
3 360,000 0.92
4 390,000 1.05
The answer is $257,400. Is this right?
If we have original data, seasonally adjusted is original data/0.78 = $423,077. Tq sirAssuming that ‘original data’ is meaning the actual demand in quarter 2 (which is what I would assume) then the answer is wrong and the correct answer is indeed $423,077.
$257,400 would only be correct if $330,000 was the trend figure (and the way the ‘original data’ is moving does actually suggest that it is meant to be the trend figure). This is a terribly badly worded question if it is worded exactly as you have typed it.
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