Use the Following Quarterly Data to Develop the Seasonal Indexes

question 93

Essay

Use the following quarterly data to develop the seasonal indexes:
$$\begin{array} { | c | r | r | r | } \hline \text { Quarter } & \text { Year 1 } & \text { Year 2 } & \text { Year 3 } \\\hline 1 & 205 & 198 & 240 \\2 & 389 & 415 & 420 \\3 & 475 & 530 & 554 \\4 & 257 & 293 & 307 \\\text { Total } & 1326 & 1436 & 1521 \\\hline\end{array}$$
The manager predicts that the demand for next year will be 1625.What are the quarterly forecasts for next year?

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Definitions:

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically associated with government bonds.

Capital Allocation Line

A line on a graph that represents the risk-reward ratio of investments, showing the optimal portfolio mix between risk-free assets and risky assets.

Reward-to-Volatility Ratio

A measure of the return on an investment relative to its risk, often used to compare the performance of investment strategies.

Efficient Frontier

A graphical representation of the set of optimal portfolios that provides the best possible expected return for a given level of risk.