Question

Seasonal variation Indice is equal to
1. (General Average ÷ Seasonal Average) × 100
2. (General Average × Seasonal Average ) × 100
3. (Seasonal Average ÷ General Average) × 100
4. (Seasonal Average + General Average) × 100

Answer 1

Correct Answer - Option 3 : (Seasonal Average ÷ General Average) × 100

The correct answer is (Seasonal Average ÷ General Average) × 100

• The seasonal index is simply the average of the ratios for the corresponding month over all years.
• It is an average that can be used to compare an actual observation relative to what it would be if there were no seasonal variation.
• An index value is attached to each period of the time series within a year.
  • It is calculated as (Seasonal Average ÷ General Average) × 100