Chapter 2 - Formulas to learn

Question 1

TIME SERIES

Answer 1

TS = T + SV

Question 2

SEASONAL VARIATION

Answer 2

SV = TS - T

Question 3

TREND

Answer 3

T = TS - SV

Question 4

Multiplicative model:

TIME SERIES

Answer 4

TS = T x SV

Question 5

INDEX

Answer 5

Current period figure / Base period figure x 100

Question 6

CASH FLOW DEFLATE

Answer 6

Cash flow to deflate x Index number of previous period / Index number of year in which cash flow occurs

Question 7

CASH FLOW INFLATE

Answer 7

Cash flow to inflate x Index number of future period / Index number of year in which cash flow occurred

Question 8

DEFLATION OF SALES REVENUE

Answer 8

Sales for current year x Index number of 2017 / Index number in year sales occurred

Question 9

INFLATION OF SALES REVENUE

Answer 9

Sales in current year x Index number for 2027 / Index number for years sales occurred

Question 10

INDEXATION WITH TWO VARIABLES

- Sales volume index

Answer 10

Current period figure =

Base period figure x Current year index / Base year index

Question 11

INDEXATION WITH TWO VARIABLES

- Sales price index

Answer 11

Current period figure =

Base period figure x Current year index / Base year index

Question 12

STRATIFIED SAMPLING

Answer 12

75k Customers, 300k total number of customers & 5k questionnaires / samples

(75,000/300,000) x 5,000