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18 October, 18:11

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 0.8. What is the seasonally-adjusted sales forecast for January?

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  1. 18 October, 20:06
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    Adjusted forecast for January is 640

    Explanation:

    given,

    Demand forecast of a certain product = 800 units

    averaged over all months = 12 months

    January monthly index = 0.8

    We have to find seasonally-adjustment sales for January

    Adjusted forecast = (Demand) x (monthly index)

    = 800 x 0.8

    = 640

    Adjusted forecast for January is 640
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