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

Answer:

Adjusted forecast for January is 640

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