A tire dealership has sold an average of 1,000 radial tires each year. In the pa
ID: 3380120 • Letter: A
Question
A tire dealership has sold an average of 1,000 radial tires each year. In the past two years, tire sales were as follows:
Season
Year 1 Demand
Year 2 Demand
Fall
200
250
Winter
350
300
Spring
150
165
Summer
300
285
Calculate the seasonal index for each quarter.
Fall = 0.85, Winter = 1.25, Spring = 0.58, Summer = 1.12
Fall = 0.99, Winter = 1.19, Spring = 0.59, Summer = 1.17
Fall = 0.95, Winter = 1.35, Spring = 0.68, Summer = 1.22
Fall = 0.80, Winter = 1.20, Spring = 0.53, Summer = 1.07
Season
Year 1 Demand
Year 2 Demand
Fall
200
250
Winter
350
300
Spring
150
165
Summer
300
285
Explanation / Answer
Season
Year 1 Demand
Year 2 Demand
Fall
200
250
Winter
350
300
Spring
150
165
Summer
300
285
Seanson Index
Fall = 0.9
Winter = 1.3
Spring = 0.63
Summer = 1.17
Season
Year 1 Demand
Year 2 Demand
Average S.IFall
200
250
225 225/250 = 0.9Winter
350
300
325 325/250 = 1.3Spring
150
165
157.5 157.5/250=0.63Summer
300
285
292.5 292.5/250=1.17 Average 250 1Related Questions
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