Seasonally adjusted annual rate


Seasonally adjusted annual rate

The Seasonally Adjusted Annual Rate (SAAR) refers to the rate adjustment employed when drawing comparisons between various sets of statistical data. As the name suggests, it takes into account fluctuations of values in such data which might occur due to seasonality. Such data would be affected by the time of the year (and hence the season) and thus it would be misleading to draw comparisons month-to-month all year long. An example would be occupancy rates of ski resorts, which would by default be higher during winter as compared to summer. Sales between these two seasons can only be fairly compared through seasonally adjusted rates. The SAAR is calculated by dividing the unadjusted annual rate for the month by its seasonality factor and creating an adjusted annual rate for the month. These adjustments are more often used when economic data is released to the public.

References

* [http://www.investopedia.com/terms/s/saar.asp Investopedia's entry on the SAAR]

See also

*Seasonal adjustment


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