Explanation:
The norm (average monthly sales) = USD 45.5 billion / 4 quarters = USD 11.375 billion/quarter
The seasonal index = USD 17.2 billion / USD 11.375 billion = 1.51
An index of 1.51 means that January sales are 51% above the norm.
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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
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