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LPM Co has identified the trend line relating to its sales revenue as 2,000 + 25X.
X denotes the quarter number, with the first quarter of 20X5 being 13, the second quarter of 20X5 being 14, etc.LPM Co uses the multiplicative model and has calculated the following seasonal variations:
Quarter 1: -0.20
Quarter 2: -0.08
Quarter 3: +0.04
Quarter 4: +0.24What is LPM Co’s seasonally adjusted sales revenue forecast for the second quarter of 20X7?
Sir my question is here that the question asks for Seasonally Adjusted Sales Revenue. Which means not taking into account the seasonal impact whole forecasting and just using trend line..
But the answer in question has also taken into account the seasonal impact of -8% or 92%. Question like this was in the kit of B.P.P.
And i also crossed check the term “seasonally adjusted” on Google. Which states.
“Seasonal adjustment or deseasonalization is a statistical method for removing the seasonal component of a time series. It is usually done when wanting to analyse the trend, and cyclical deviations from trend, of a time series independently of the seasonal components”.
Seasonally adjusted means taking into account the seasonal variation – that it why it is adjusted.
But Sir. The question in Kit is not taking into account the seasonal adjustment for that.
And even on internet they have mentioned what i just quoted.
You wrote in your earlier post that the answer has taken into account the seasonal adjustment!
Sir the answer from ACCA’s part i meant.
In their specimen exam.While similar questions line these in the kit of B.P.P we have not taken seasonal impact. Because Seasonally Adjusted means removing the impact (adjusting) seasonal variations. And to understand the trend…
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