A Seasonal Index for a Monthly Series Is About to Be

question 92

Multiple Choice

A seasonal index for a monthly series is about to be calculated on the basis of three years' accumulation of data. The three previous July values were 110, 150, and 130. The average over all months is 190. The approximate seasonal index for July is

• A) 0.487
• B) 0.684
• C) 1.462
• D) 2.053
• E) cannot be calculated with the information given

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Definitions:

Behavioral Economics Research

The study of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions.

Net Change

refers to the difference in a financial instrument's closing price from one period to the next, indicating the level of price movement or volatility over time.

Utility

An economic term denoting the total satisfaction received from consuming a good or service.

Endowment Effect

A mental prejudice in which individuals attribute higher worth to items simply because they possess them.