The Ratios of "Actuals to Moving Averages" (Seasonal Indexes)for a Time

question 23

Multiple Choice

The ratios of "actuals to moving averages" (seasonal indexes) for a time series are presented in the following table as percentages. $$\begin{array} { | r | r | r | r | r | r | } \hline & 2008 & 2009 & 2010 & 2011 & 2012 \\\hline Q _ { 1 } & & 112.22 & 110.78 & 111.22 & 111.87 \\\hline Q _ { 2 } & & 100.65 & 108.68 & 103.78 & 101.95 \\\hline Q _ { 3 } & 97.76 & 99.08 & 97.68 & 97.61 & \\\hline Q _ { 4 } & 86.61 & 95.00 & 94.64 & 92.92 & \\\hline\end{array}$$ The final (completely adjusted) estimate of the seasonal index for Q₁ is __________.

• A)109.733
• B)109.921
• C)113.853
• D)113.492
• E)111.545

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Definitions:

Incremental Changes

Small or minimal adjustments or changes that are made to improve a process, product, or system over time.

Replacement Projects

Projects undertaken by a company to replace old or obsolete assets in order to maintain or improve current operations.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health and efficiency.

Corporate Tax Rate

A percentage of a corporation's profits taken as tax by the government.