If a quarterly seasonal index is 0.56,it implies that ________.
A)the quarter's sales are 56% above the yearly average
B)the quarter's sales are 56% of the year total sales
C)the other three quarter percentages will total 44%
D)the quarter's sales are 56% of the yearly average

Question

Quizplus · Accepted Answer

A quarterly seasonal index of 0.56 implies that the quarter's sales are 56% of the yearly average. This means that the quarter's sales are lower than average. Option A is incorrect because it implies that the quarter's sales are above the yearly average. Option B is not accurate because it suggests that the quarter's sales represent 56% of the year's total sales, which may not be accurate. Option C is also wrong since there is no information to indicate that the other three-quarter percentages will total 44%.

If a Quarterly Seasonal Index Is 0