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27 October, 14:46

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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  1. 27 October, 18:19
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    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.
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