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Get access to the detailed solutions to the previous years questions asked in IIFT exam
Quarters with negative deviation from its trend
Average deviation for any quarter = Sum of all deviations from the quarter / Number of years
By observation, Quarter 1 will be rejected as all its deviations are positive.
Average deviation for quarter 2 = ((63-64.5) + (59-61.12) + (55-55.25))/3 = (-1.5-2.12-0.25)/3 = -3.87/3
Average deviation for quarter 3 = ((56-60.38) + (63-65.5) + (56-58))/3 = (-4.38-2.5-2)/3 = -8.88/3
Average deviation for quarter 4 = ((61-61.38) + (67-65.25) + ( 52-56.25 ))/3 = (-0.38+1.75-4.25)/3 = -2.88/3
Quarter 3 has maximum average negative deviation.