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?

Question

Esperanza Hernandez

Physics

28 April, 02:44

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?

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Answers (1)

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Francis Floyd · Answer 1

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.