Give an example of seasonal index.?

An example of a seasonal index could be for a retail store that experiences higher sales during the holiday season. The seasonal index for the holiday season might be 1.5, meaning that sales during this time are 50% higher than the average sales throughout the rest of the year. This index would help the store predict and plan for the increase in sales during the holiday season.

Example of Seasonal Index:

Product: Ice Cream

Time Period: Monthly

Data:

| Month | Sales (in units) | Seasonal Index |
|---|---|---|
| January | 5,000 | 0.63 |
| February | 5,500 | 0.69 |
| March | 6,000 | 0.75 |
| April | 8,000 | 1.00 |
| May | 12,000 | 1.50 |
| June | 15,000 | 1.88 |
| July | 18,000 | 2.25 |
| August | 16,000 | 2.00 |
| September | 12,500 | 1.56 |
| October | 9,000 | 1.13 |
| November | 6,500 | 0.81 |
| December | 5,200 | 0.65 |

Seasonal Index:

The seasonal index is calculated by dividing the average sales for each month by the average sales for the entire year. In this example, the average sales for the year are 9,583 units.

Therefore, the seasonal index for January is:

Seasonal Index (January) = 5,000 units / 9,583 units = 0.63

Similarly, the seasonal indices for the other months are calculated.

Interpretation:

The seasonal index shows that ice cream sales are highest in the summer months (June, July, and August), and lowest in the winter months (January, February, and December). This is likely due to the weather, as people are more likely to consume ice cream when it is warm outside.