Question

Demand for a certain product is forecast to be 800 units per month, averaged over all 12 months of the year. The product follows a seasonal pattern, for which the January monthly index is 0.8. What is the seasonally-adjusted sales forecast for January?

Answer 1

Adjusted forecast for January is 640

Step-by-step explanation:

given,

Demand forecast of a certain product = 800 units

averaged over all months = 12 months

January monthly index = 0.8

We have to find seasonally-adjustment sales for January

Adjusted forecast = ( Demand ) x ( monthly index )

= 800 x 0.8

= 640

Adjusted forecast for January is 640