Uses of Seasonal Indices

Broadly speaking, there are two types of used of seasonal indices which can be made advantageously by a statistician. These are as follows:

• They can be used analytically to convert the observed data into the deseasonalised data that may help in the study of short-run fluctuations in a series not associated with the seasonal variations. This is done simply by division of the observed data by the corresponding seasonal indices. Thus, TCI =  TSCI/ S
• They can be used synthetically for business, and economic forecasting, and managerial control as well. The managements, invariably, make use of the seasonal patterns of their business that directly influence their employments, productions, purchases, sales and inventory policies.