A company has computed a seasonal index for its quarterly sales. Which of the following statements is not correct?

Multiple Choice

• An index of 1.10 indicates sales 10% above the norm.
• The average index is 1.
• The sum of the four quarterly seasonal index numbers is 4.
• The index for any quarter must be between 0 and 2.
• An index of 0.75 for quarter-one sales indicates that sales were 25 percent lower than average sales.