Normalizing a Seasonal Index

The sum of the Seasonal indices should sum to the number of indices you have.
For instance, in the Coal example there are 4 seasonal indices, so when you add
them all up, they should sum to 4. However, because of errors in the way
seasonal indices are calculated the sum will always be slightly off. The average
of the seasonal indices should be 1, but because of errors in the way seasonal
indices are calculated the average will always be slightly off.

Normalized
Seasonal Seasonal
Index Index

Q1 1.108239 1.112305
Q2 0.783523 0.786397
Q3 0.859847 0.863002
Q4 1.23377 1.238296

Sum 3.98538 4.00000

Average 0.996345 1.00

Normalizing the Seasonal Index corrects this error and forces the sum to total the
number of seasonal indices and the average to always be 1. To normalize the
seasonal indices, you will divide each index by the average index. For instance,
in the above table I normalized the seasonal index for Q1 as follows:

1.108239 / 0.996345.

F G H
3 Normalized
4 Seasonal Seasonal
5 Index Index
6
7 Q1 =AVERAGE(C7:C14) =G7/G$12
8 Q2 =AVERAGE(C17:C24) =G8/G$12
9 Q3 =AVERAGE(C26:C33) =G9/G$12
10 Q4 =AVERAGE(C35:C42) =G10/G$12
11
12 =AVERAGE(G7:G10) =AVERAGE(H7:H10)