CMA Foundation · Fundamentals of Business Mathematics and Statistics · Index Numbers and Time Series
Using the ratio-to-trend method, the actual sales of a shop in a quarter were ₹ 66,000 while the trend value for that quarter was ₹ 60,000. What is the seasonal index figure for that quarter in this single observation (ratio to trend × 100)?
The index is 110. In the ratio-to-trend method the seasonal figure is actual divided by trend, times 100: 66,000 divided by 60,000 is 1.10, giving 110. Inverting the ratio would wrongly give 90.9.
- A90.9
- B110Correct
- C106
- D10
Explanation
Ratio to trend = actual / trend × 100 = 66,000 / 60,000 × 100 = 110. The option 90.9 comes from inverting the ratio (60,000/66,000). The option 10 is the percentage excess, not the index.
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