I a Typical Monthly Seasonal Index of 107

question 103

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. The ratio-to-moving average method removes the time series trend component, resulting in 12
Numbers that are called specific seasonals.
iii. The total of the four typical quarterly indexes should equal 100.0.

• 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:

Price-elasticity Coefficient

A measure that indicates how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage change.

Midpoint Formula

A method used in mathematics to find the midpoint or center point between two points on a line segment by averaging their x and y coordinates.

Candy Bars

Snack food items made primarily of chocolate and often contain fillers like nuts, caramel, or nougat.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than one indicating a high responsiveness.