Question

For the third quarter, the sales are 2,500 units; the seasonal index for the quarter is 0.95. What are the deseasonalized sales for the quarter?

1,600

2,632

2,080

2,500

Answer 1

2,632

Explanation:

In order to obtain the deseasonalized data (D) for sales in the third quarter, simply divide the actual sales data (2,500 units) by the seasonal index (0.95):

`D=(2,500)/(0.95)\\D=2,631.58`

Since the data regards units, round up to the next whole unit.

The deseasonalized sales for the quarter are 2,632 units.