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 larger than 1.1.
is smaller than 1.1.
is equal to 1.1.
cannot be determined with the information provided.

Answer 1

Answer:

is smaller than 1.1.

Explanation:

Some business sales can get influenced heavily by season, like how swimsuit sell in summer but not in winter. This influence is called a seasonal factor. The sales of the product have to be adjusted to seasonal factor to show a result that more accurately represent the sales. There are 12 months and the sum of the adjusted factor is 12.18, so the adjusted ted factor for every month will be: 12.18/12 =  1.015.

The adjusted seasonal factor for April will be: 1.1/1.015= 1.0837

The result is smaller than 1.1