Definition of Seasonally Adjusted Annual Rate (SAAR)
In order to remove the seasonal variation from the business data, an adjustment rate is used. The purpose of using this technique is to draw accurate comparisons from month to month all year round.
Explanation of Seasonally Adjusted Annual Rate (SAAR)
Seasonally adjusted annual rates are usually used when economic data is related to public. The cold beverages industry is seasonal; its demand increases in summer while decreases in winter. By using seasonally adjusted sale rates, the sales in the summer can be accurately compared with the sales in the winter.