Question

The seasonal factors (also known as indices) for the first three quarters for the demand of snow blowers are 0.52,1.08,1.50. What is the seasonal factor for quarter 4?

Answer 1

To find the seasonal factor for the fourth quarter, you can use the principle that the sum of seasonal factors for all quarters in a year should equal the number of quarters (which is 4 in this case).

Given the seasonal factors for the first three quarters are:

1. Q1 = 0.52
2. Q2 = 1.08
3. Q3 = 1.50

You can calculate the seasonal factor for Q4 as follows:

Sum of known seasonal factors = Q1 + Q2 + Q3
= 0.52 + 1.08 + 1.50
= 3.10

The equation for the seasonal factor for Q4 (let's denote it as Q4) is:

Total seasonal factors for the year = Q1 + Q2 + Q3 + Q4 = 4

Thus,

3.10 + Q4 = 4

Now, solve for Q4:

Q4 = 4 - 3.10
Q4 = 0.90

So, the seasonal factor for the fourth quarter is **0.90**.