Question

Appliance Center sells a variety of electronic equipment and home appliances. For the last 4 years, 2010 through 2013, the following quarterly sales (in $ millions) were reported.

	Quarter
Year	I	II	III	IV
2010	5.3	4.1	6.8	6.7
2011	4.8	3.8	5.6	6.8
2012	4.3	3.8	5.7	6.0
2013	5.6	4.6	6.4	5.9
Determine a typical seasonal index for each of the four quarters

Answer 1

• All working forms part of the answer
• Index = Period value / Average Value
• Index for all 4 Quarters are calculated below:

Year	Q1 [Period values]	Index
2010	$                                        5.30	1.08
2011	$                                        4.38	0.89
2012	$                                        4.30	0.88
2013	$                                        5.60	1.14
Total	$                                     19.58	4.00
Average	$                                        4.90
Year	Q2	Index
2010	$                                        4.10	1.01
2011	$                                        3.80	0.93
2012	$                                        3.80	0.93
2013	$                                        4.60	1.13
Total	$                                     16.30
Average	$                                        4.08
Year	Q3	Index
2010	$                                        6.80	1.11
2011	$                                        5.60	0.91
2012	$                                        5.70	0.93
2013	$                                        6.40	1.04
Total	$                                     24.50
Average	$                                        6.13
Year	Q4	Index
2010	$                                        6.70	1.06
2011	$                                        6.80	1.07
2012	$                                        6.00	0.94
2013	$                                        5.90	0.93
Total	$                                     25.40
Average	$                                        6.35