I a Typical Monthly Seasonal Index of 107

question 65

Multiple Choice

i. A typical monthly seasonal index of 107.0 indicates that sales (or whatever the variable is) are 107
Percent above the annual average.
ii. Each typical seasonal index is a percent with the average for the year equal to 100.
iii. The ratio-to-moving-average method eliminates the seasonal, cyclical and irregular components
From the original data (y) .

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) and (ii) are correct statements but not (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Standard Deviation

A measure that indicates the amount of variation or dispersion of a set of values from the mean.

Service Level

A measure of the quality and timeliness of service provided to customers, often framed as a percentage of customer demands met on time.

Gallons of Milk

A volumetric measurement commonly used to quantify liquid milk in a specified quantity for consumption, production, or sale.

Service Level

A measurement used in management to define the standard of performance aimed to be achieved in delivering services or products to customers.