Hybrid cars have gained popularity because of their fuel economy and the uncerta
ID: 3225720 • Letter: H
Question
Hybrid cars have gained popularity because of their fuel economy and the uncertainty regarding the price of gasoline. All automakers, including the Ford Motor Co., have planned to significantly expand their hybrid vehicle lineup (CNN.com, November 9, 2005). The following table contains quarterly sales of Ford and Mercury hybrid cars.
Compute the seasonal indices. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Adjusted
Seasonal Index
Hybrid cars have gained popularity because of their fuel economy and the uncertainty regarding the price of gasoline. All automakers, including the Ford Motor Co., have planned to significantly expand their hybrid vehicle lineup (CNN.com, November 9, 2005). The following table contains quarterly sales of Ford and Mercury hybrid cars.
8000 7000 6000 5000 4000 3000 10 12 14Explanation / Answer
A.a1) Strong trend with seasonal variations.
A.b1)
Year
Q1
Q2
Q3
Q4
Total
Average
2006
6,192
5,663
4,626
5,645
22,126
5,532
2007
5,149
6,272
5,196
6,545
23,162
5,791
2008
5,467
5,235
3,160
7,007
20,869
5,217
2009
5,337
5,337
5,337
Year
Q1
Q2
Q3
Q4
2006
1.1194
1.0238
0.8363
1.0205
2007
0.8892
1.0832
0.8973
1.1303
2008
1.0479
1.0034
0.6057
1.3430
2009
1.0000
0.0000
0.0000
0.0000
Seasonal Indices
1.014123
0.777582
0.584829
0.873466
Adjusted
Seasonal Index
Quarter 1
1.014123
Quarter 2
0.777582
Quarter 3
0.584829
Quarter 4
0.873466
A.b2)
The first quarter index implies that the number of cars sold is % above its average quarterly level.
The second quarter index implies that the number of cars sold is % below its average quarterly level.
The third quarter index implies that the number of cars sold is % below its average quarterly level.
The fourth quarter index implies that the number of cars sold is % below its average quarterly level.
Year
Q1
Q2
Q3
Q4
Total
Average
2006
6,192
5,663
4,626
5,645
22,126
5,532
2007
5,149
6,272
5,196
6,545
23,162
5,791
2008
5,467
5,235
3,160
7,007
20,869
5,217
2009
5,337
5,337
5,337
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