Core Mathematics - Deseasonalising the data
Deseasonalising the data
Data can be deseasonalised using seasonal indices. If this is done then
underlying trends, masked by seasonal patterns, can be revealed. A high
seasonal index for Q1 indicates that in this season sales are normally
above the annual average. If we divide by the seasonal index in that case
we will reduce the actual sales value and hence smooth out the fluctuation
caused by that peak. The value obtained is called the deseasonalised value.
We can then calculate the deseasonalised sales figure by dividing the
actual figure by its corresponding seasonal index.
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