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Statistical Question

The trend in a firm's sales is for an increase of 2% per quarter.

Quarter 1:
Trend - 48,000.
Seasonal Variation - +10%.
Actual Sales - 52,800.

Quarter 2:
Trend - 48,960.
Seasonal Variation - +25%.
Actual Sales - 61,200.

Quarter 3:
Trend - 49,939.
Seasonal Variation - -5%.
Actual Sales - 47,442.

Quarter 4:
Trend - 50,938.
Seasonal Variation - -30%.
Actual Sales - 35,657.

How is the Seasonal Variation -30% for Quarter 4?

Comments

  • davealucasdavealucas LondonMAAT Posts: 73
    Seasonal variations should, when added together, come back to zero.

    In your case, the three seasonal variations come to +30% when added together. Therefore the final variation must be -30%
    Liam_Jenkins_99
  • Liam_Jenkins_99Liam_Jenkins_99 Registered Posts: 9
    Thank you Dave.
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