The trend for shares of Boxley Box Company is generally moving upward. Toward the end of the data collection period, there was a slight down turn in the number of shares.
Victor Anderson, the owner of Anderson Belts, Inc., is studying absenteeism among his employees. His workforce is small, consisting of only five employees. For the last three years he recorded the following number of employee absences, in days, for each quarter.
Year I II III IV
2004 4 10 7 3
2005 5 12 9 4
2006 6 16 12 4
Determine a typical seasonal index for each of the four quarters.
Text shows the following answer to the question, but I cannot seem to get there. Please explain.
Quarter Average SI
Component Seasonal Index
1 0.6859 0.6911
2 1.6557 1.6682
3 1.1616 1.1704
4 0.4732 0.4768
The solution answers the question below.