# What is the seasonal index?

**What is the seasonal index?**In

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A **seasonal index** is a measure of how a particular season through some cycle compares with the average season of that cycle. By deseasonalizing data, we’re removing **seasonal** fluctuations, or patterns in the data, to predict or approximate future data values. **Seasonal indices**.

Consequently, what is seasonal index in time series?

Measuring **seasonality**. **Seasonal** variation is measured in terms of an **index**, called a **seasonal index**. It is an average that can be used to compare an actual observation relative to what it would be if there were no **seasonal** variation. An **index** value is attached to each period of the **time series** within a year.

Furthermore, what would a seasonal index of 1.25 mean? This means that on average, Q1 is 125% of the average quarter. This is an “above average” quarter. A **seasonal index** below 1 means that it is a “below average” quarter; .

Subsequently, one may also ask, how do you find seasonal index?

The **seasonal index** of each value is calculated by dividing the period amount by the average of all periods. This creates a relationship between the period amount and the average that reflects how much a period is higher or lower than the average. =Period Amount / Average Amount or, for example, =B2/$B$15.

How do you do seasonal index in Excel?

This will calculate the average monthly sales for the year. Enter the following formula into cell C2: “=B2 / B$15” omitting the quotation marks. This will divide the actual sales value by the average sales value, giving a **seasonal index** value. Select cell C2.

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