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?
A) 640 units
B) 798.75 units
C) 801.25 units
D) 1000 units
E) 88.33 units

Question

Quizplus · Accepted Answer

The seasonally-adjusted sales forecast for January is calculated by multiplying the average monthly demand by the monthly index for January. Thus, 800 units * 1.25 = 1000 units.

Demand for a Certain Product Is Forecast to Be 800