Question

Problem 3-14

A tourist center is open on weekends (Friday, Saturday, and Sunday). The owner-manager hopes to improve scheduling of part-time employees by determining seasonal relatives for each of these days. Data on recent traffic at the center have been tabulated and are shown in the following table:

	Week
	1	2	3	4	5	6
Friday	144	154	154	154	159	164
Saturday	254	254	264	264	279	279
Sunday	164	164	174	174	174	184

a. Develop seasonal relatives for the shop using the centered moving average method. (Round your intermediate calculations and final answers to 2 decimal places.)

	X⎯⎯⎯X¯
Friday
Saturday
Sunday

b. Develop seasonal relatives for the shop using the SA method. (Round your intermediate calculations and final answers to 4 decimal places.)

	SA Index
Friday
Saturday
Sunday

Answer 1

a)

	Day	Sales	Moving total	Centered moving average	Sales/Moving average 3
Week 1	Fri	144
	Sat	254	562	187.33	1.36
	Sun	164	572	190.67	0.86
Week 2	Fri	154	572	190.67	0.81
	Sat	254	572	190.67	1.33
	Sun	164	572	190.67	0.86
Week 3	Fri	154	582	194.00	0.79
	Sat	264	592	197.33	1.34
	Sun	174	592	197.33	0.88
Week 4	Fri	154	592	197.33	0.78
	Sat	264	592	197.33	1.34
	Sun	174	597	199.00	0.87
Week 5	Fri	159	612	204.00	0.78
	Sat	279	612	204.00	1.37
	Sun	174	617	205.67	0.85
Week 6	Fri	164	617	205.67	0.80
	Sat	279	627	209.00	1.33
	Sun	184
			Day	Seasonal relatives
			Fri	0.79
			Sat	1.35
			Sun	0.86

sample calculation:

Centered moving average for Week 1 Saturday = average(144,254,164) = 187.33

Sales/Moving average 3 for Week 1 Saturday = 254/187.33 = 1.36

b)

	Week 1	Week 2	Week 3	Week 4	Week 5	Week 6	Season average	SA index
Fri	144	154	154	154	159	164	154.8333	0.7831
Sat	254	254	264	264	279	279	265.6667	1.3436
Sun	164	164	174	174	174	184	172.6667	0.8733
					Overall average		197.7222