Question

Suppose that the unadjusted seasonal factor for the month of April is 1.10. The sum of the 12 months' unadjusted seasonal factor values is 12.18. The normalized (adjusted) seasonal factor value for April is ______.

Answer 1

1.0837

Explanation:

Given:

Unadjusted seasonal factor = 1.10

Sum of the 12 months' unadjusted seasonal factor = 12.18

So,

Unadjusted seasonal factor for 1 month =
`(Sum.of.the .12. months. unadjusted .seasonal. factor)/(total no. of months)` =
`(12.18)/(12)` = 1.015

The normalized seasonal factor for april =
`( Unadjusted .seasonal. factor. for. april)/(Unadjusted. seasonal .factor. of. 1. month)` =
`(1.10)/(1.015)` = 1.0837

The normalized seasonal factor for april = 1.0837