Onisha manages a group of apartment complexes and is trying to create a budget for next year. Below are the monthly expenses for the last three years, in thousands of dollars. Help her by finding the appropriate seasonal indices for April and October.

Year 1 Year 2 Year 3
January 170 180 195
February 180 205 210
March 205 215 230
April 230 245 282.3
May 240 265 290
June 315 330 390
July 360 400 420
August 290 335 330
September 240 260 290
October 240 270 294.8
November 230 255 280
December 195 220 250

Select one:
a. April = 0.24, October = 268.27
b. None of the other options.
c. April = 2.86, October = 1.01
d. April = 0.95, October = 1.01
e. April = 252.43, October = 268.27
f. April = 0.95, October = 22.36

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anthougo anthougo · Answer 1 · 2021-02-20T03:37:21+01:00

Answer:

Onisha

The appropriate seasonal indices for April and October are:

d. April = 0.95, October = 1.01

Explanation:

a) Data and Calculations:

Year 1 Year 2 Year 3 Yearly Averages

January 170 180 195 181.67

February 180 205 210 198.33

March 205 215 230 216.67

April 230 245 282.3 252.43

May 240 265 290 265

June 315 330 390 345

July 360 400 420 393.33

August 290 335 330 318.33

September 240 260 290 263.33

October 240 270 294.8 268.27

November 230 255 280 255

December 195 220 250 221.67

Total average 264.92 (31,79.03/12)

April = 252.43/264.92 = 0.95

October = 268.27/264.92 = 1.01

b) A season index is defined by the value for the season divided by the seasonal average.