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November 01, 2025, 10:42:44 am
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Author Topic: Seasonality Question!  (Read 9321 times)  Share 

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Kid Cudi

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Seasonality Question!
« on: November 01, 2013, 12:26:09 pm »
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The Seasonal index for a headache tablet sales in summer is 0.80
To correct for seasonality, the headache tablet sales figures for summer should be

A) reducded by 80%
B) reduced by 25%
C) reduced by 20%
D) increased by 20%
E) increased by 25%

The answer is E.


The working i've attached.

i dont understand why it's multiplied by 1.25...

Thanks

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tm_17

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Re: Seasonality Question!
« Reply #1 on: November 01, 2013, 12:40:57 pm »
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Because 1/80 = 1.25

Therefore it is increased by 25%
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Kid Cudi

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Re: Seasonality Question!
« Reply #2 on: November 01, 2013, 12:41:50 pm »
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Quote from: tm_17 on November 01, 2013, 12:40:57 pm
Because 1/80 = 1.25

Therefore it is increased by 25%

Thank you!
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