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Ratio to moving average

An analyst wants to use the ratio-to-moving average method to forecast a company's sales for the next few quarters. Beginning in Quarter 4 of 2005, the analyst collects the following sales data (in millions of dollars).

Estimate the seasonal index associated with Quarter 3. Round your answer to at least 3 decimal places.

Time period Quarter Sales Moving Average
1 4 94.5

2 1 177.1
117.250
3 2 106.6
126.925
4 3 90.8
116.550
5 4 133.2
120.525
6 1 135.6
115.650
7 2 122.5
114.425
8 3 71.3
130.625
9 4 128.3
142.250
10 1 200.4
146.950
11 2 169.0

12 3 90.1

Solution Summary

The solution provides step by step method for the calculation of seasonal index under ratio to moving average method . Formula for the calculation and Interpretations of the results are also included.

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