Question: Based on past data, your firm's sales show a seasonal pattern. The seasonal index for November is 1.08, for December it is 1.38, and for January it is 0.84. Sales for November were $285,167.
a. Would you ordinarily expect an increase in sales from November to December in a typical year? How do you know?
b. Find November's sales, on a seasonally adjusted basis.
c. Take the seasonally adjusted November figure and personalize it using the December index to find the expected sales level for December.
d. Sales for December have just been reported as $430,106. Is this higher or lower than expected, based on November's sales?
e. Find December's sales, on a seasonally adjusted basis.
f. Were sales up or down from November to December, on a seasonally adjusted basis? What does this tell you?
g. Using the same method as in part c, find the expected level for January sales based on December's sales.