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Question
Compute the average seasonal movement for the following series
| Year | Quarterly Production | |||
| I | II | III | IV | |
| 2002 | 3.5 | 3.8 | 3.7 | 3.5 |
| 2203 | 3.6 | 4.2 | 3. | 4.1 |
| 2004 | 3.4 | 3.9 | 37 | 4.2 |
| 2005 | 4.2 | 4.5 | 3 | 4.4 |
| 2006 | 3.9 | 4.4 | 4.2 | 4.6 |
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Solution
Computation of seasonal. Index by the method of simple averages.
| Year | Quarterly Production | |||
| I | II | III | IV | |
| 2002 | 3.5 | 3.8 | 3.7 | 3.5 |
| 2203 | 3.6 | 4.2 | 3. | 4.1 |
| 2004 | 3.4 | 3.9 | 37 | 4.2 |
| 2005 | 4.2 | 4.5 | 3 | 4.4 |
| 2006 | 3.9 | 4.4 | 4.2 | 4.6 |
| Quarterly Total |
18.6 | 20.8 | 18.8 | 20.8 |
| Quarterly Averages |
3.72 | 4.16 | 3.76 | 4.16 |
Grand Average = `(3.72 + 4.16 + 3.76 + 4.16)/4`
= `15.80/4`
= 3.95
S.I for I Quarter = `"Average of I Quarter"/"Grand Average" xx 100`
S.I for I Quarter`3.72/3.95 xx 100`
= 941772
S.I for II Quarter = `"Averge of II Quarter"/"Grand Average" x 100`
= `4.16/3.95 xx 100`
= 105.3165
S.I for III Quarter = `"Average of III Quarter"/"Grand Average" xx 100`
= `3.76/3.95 xx 100`
= 95.1899
S.I for IV Quarter = `"Average of IV Quarter"/"Grand Average" xx 100`
= `4.16/3.95 xx 100`
= 105.3165
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