Seasonally adjusted annual rate
The seasonally adjusted annual rate (SAAR) is a rate that is adjusted to take into account fluctuations of values in the data that might occur because of seasonality. Such data would be affected by the time of the year, making misleading to draw comparisons month-to-month all year long.
An example would be car sales, occupancy rates of ski resorts, which would by default be higher during winter as compared to summer. Sales between the two seasons can be fairly compared only by using seasonally adjusted rates. The SAAR is calculated by dividing the unadjusted annual rate for the month by its seasonality factor and by creating an adjusted annual rate for the month.
- "Light Weight Vehicle Sales: Autos and Light Trucks". Federal Reserve Bank of St. Louis. 9 November 2016. Retrieved 15 November 2016.
- "Federal Reserve Seasonal Factors for Domestic Auto and Truck Production: formulas". Federal Reserve. 1 April 2016. Retrieved 15 November 2016.
- Investopedia's entry on the SAAR
- Moody's Analytics Buffet: SAAR
- What Does Seasonally Adjusted Annual Rate (SAAR) Mean?
- Seasonal adjustment, Duke University
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