Determining a typical seasonal index


Question 1:

I started my own company manufacturing surf boards. For the last three years I recorded the following number of surf board sales for each quarter.

Quarter

Year Winter Spring Summer Fall

2002 4 10 7 3

2003 5 12 9 4

2004 6 16 12 4

Determine a typical seasonal index for each of the four quarters.

Question 2:

The surf board business is definitely growing and in the spring of 2005 my sales totaled 15 boards for that quarter, but I have expected it because the typical seasonal index for that quarter is 1.668. The typical seasonal index for the fall quarter is .477. How many boards should I expect to sell in the fall of 2005?

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Finance Basics: Determining a typical seasonal index
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