Compute seasonal indices for each quarter based on a cma


A major source of revenue in Texas is a state sales tax on certain types of goods and services. Data are compiled and the state comptroller uses them to project future revenues for the state budget. One particular category of goods is classified as Retail Trade. Four years of quarterly data (in $millions) for one particular area of southeast Texas follow:

Quarter

Year 1

Year 2

Year 3

Year 4

1

218

225

234

250

2

244

254

265

283

3

243

255

264

289

4

298

301

334

362

a. Compute seasonal indices for each quarter based on a CMA.

b. Deseasonalize the data and develop a trend line on the deseasonalized data.

c. Use the trend line to forecast the sales for each quarter of year 5.

d. Use the seasonal indices to adjust the forecasts found in part (c) to obtain the final forecasts.

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Financial Accounting: Compute seasonal indices for each quarter based on a cma
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