I a Typical Monthly Seasonal Index of 107

question 84

Multiple Choice

i. A typical monthly seasonal index of 107.0 indicates that sales (or whatever the variable is) are 7 percent above the annual average. ii. For a quarterly time series, the initial step, using the ratio-to-moving average method, is to remove the seasonal components from the time series using a 3-month centered moving average.
iii. In the final step, using the ratio-to-moving-average method on quarterly data, the total of the modified means should theoretically be equal to 400 because the average of should be 100.

• 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:

Under Budget

Refers to a situation where the actual spending is less than the amount that was allocated or anticipated for a specific period or project.

Fixed Budgets

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Established guidelines and methods of operation that an organization sets to regulate its activities and achieve objectives efficiently and in compliance with legal standards.

Single-use Plans

Specific actions or strategies designed to address a particular problem, goal, or project, and not intended for repeated or continual use.