How to calculate seasonal index

Nov 14, 2014

70 likes | 412 Views

How to calculate seasonal index. Pick time period (number of years) Pick season period (month, quarter) Calculate average price for season Calculate average price over time Divide season average by over time average price x 100. Using Seasonal Index to Forecast.

cecilia-silva

Download Presentation

How to calculate seasonal index

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

How to calculate seasonal index • Pick time period (number of years) • Pick season period (month, quarter) • Calculate average price for season • Calculate average price over time • Divide season average by over time average price x 100

Using Seasonal Index to Forecast • Observe price in time t1 P1 • Forecast price in time t2 P2 • Start with P1/ I1 = P2 / I2 • Then P1 x I2 / I1 = P2 • Assume that cows are selling at $50/cwt in November. What is the forecast of February?