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 1.25. What is the seasonally-adjusted sales forecast for January?

Answer 1

Explanation:

The given data is as follows.

       Demand for a certain product = 800 units/month

       January monthly index = 1.25

Since, we have to calculate seasonally adjusted sales forecast for January. Hence, it will be calculated as follows.

            Adjusted forecast = Demand × Monthly index

                                           = 800 × 1.25

                                           = 1000

Thus, we can conclude that adjusted forecast for January is 1000 units.