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CMA Foundation · Fundamentals of Business Mathematics and Statistics · Index Numbers and Time Series

Sales of a sweets shop in the festival quarter were ₹63,000, and the seasonal index for that quarter is 120. What are the deseasonalised sales for that quarter?

Deseasonalised sales are ₹52,500. Actual sales of ₹63,000 are divided by the seasonal index expressed as 1.20 to remove the seasonal effect. Multiplying by 1.2 or taking 80 percent of sales would apply the adjustment incorrectly.

  1. A₹52,500Correct
  2. B₹75,600
  3. C₹50,400
  4. D₹63,000

Explanation

Deseasonalised value = actual ÷ (index/100) = 63,000 ÷ 1.20 = ₹52,500. Multiplying by 1.2 gives ₹75,600, which adds the seasonal effect instead of removing it. Taking 80% of 63,000 gives ₹50,400, which is the wrong base for the 20% adjustment.

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