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VCE Stuff => VCE Mathematics => VCE Mathematics/Science/Technology => VCE Subjects + Help => VCE General & Further Mathematics => Topic started by: Sherlock.Holmes on March 24, 2019, 08:30:41 am

Title: Correcting for seasonality!!
Post by: Sherlock.Holmes on March 24, 2019, 08:30:41 am

Can someone please explain correctly for seasonality, I'm really confused on whether we should increase or decrease to correct seasonality.

Thanks

Title: Re: Correcting for seasonality!!
Post by: S_R_K on March 24, 2019, 10:05:31 am

If the seasonal index is > 1, then the effect of seasonality is to increase the value above what it otherwise would have been. Hence, to correct for seasonality, you need to to decrease the value.

If the seasonal index is < 1, then the effect of seasonality is to decrease the value below what it otherwise would have been. Hence, to correct for seasonality, you need to to increase the value.

In either case, to correct for seasonality, the factor by which you should multiply is given by 1/SI.