Explanation:
First, we calculate the average quarterly sales for 2017: Average Quarterly Sales = Total Annual Sales / 4 = 45.5 / 4 = 11.375 billion USD
The seasonal index for a specific quarter is calculated as the actual sales for that quarter divided by the average quarterly sales: Seasonal Index for Q2 = Sales in Q2 / Average Quarterly Sales = 17.2 / 11.375 = 1.51208
This rounds closest to 1.51.
Ultimate access to all questions.
Q.11 Caterpillar sales were USD 45.5 billion for the year 2017. The following table presents the sales for each of the four quarters of 2017:
| Quarter | Q1 | Q2 | Q3 | Q4 |
|---|---|---|---|---|
| Sales (in billion USD) | 15.2 | 17.2 | 8.3 | 4.8 |
Which of the following is the seasonal index for Q2 of 2017?
A
1.38
B
0.38
C
0.51
D
1.51
No comments yet.