Question

A major source of revenue in Texas is a state sales tax on certain types of goods and services. Data are compiled and thestate comptroller uses them to project future revenues for the state budget. One particular category of goods is classified as retail trade. four years of quarterly data (in millions) for one particular area of southeast Texas follow:quarter year 1 year 2 year 3 year 41 218 225 234 2502 247 254 265 2833 243 255 264 2894 292 299 327 356a. compute seasonal indices for each quarter based on CMAplease show work

Answer 1

Step-by-step explanation:

Percentage of Quarter Data MA CMA Percentage

1 218

2 247

3 243 250 250.875 96.86098655

4 292 251.75 252.625 115.5863434

1 225 253.5 255 88.23529412

2 254 256.5 257.375 98.68868383

3 255 258.25 259.375 98.31325301

4 299 260.5 261.875 114.176611

1 234 263.25 264.375 88.5106383

2 265 265.5 269 98.51301115

3 264 272.5 274.5 96.17486339

4 327 276.5 278.75 117.309417

1 250 281 284.125 87.98944127

2 283 287.25 290.875 97.29265148

3 289 294.5

4 356

The percentage column = data column/CMA X 100

Therefore, we have average percentages for each

quarter. We get:

Quarter 1: 88.24

Quarter 2: 98.16

Quarter 3: 97.11

Quarter 4: 115.69

so far the average of these four number is 99.8, we are going to multiply them by

100/99.8=1.001 so as to normalize them, thus getting:

Quarter 1: 88.41

Quarter 2: 98.35

Quarter 3: 97.3

Quarter 4: 115.91

So these are the seasonal indices.