Exhibit 11.8
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using Winter's method. The store has collected 12 quarters of data and needs your help to analyze the data.
-Refer to Exhibit 11.8. What formula should be entered in cell E7 to compute the base level value for year 2 Quarter 1?
A) =$D$17+(1-$D$17)*(E6+F6)
B) =$D$17*D7/G3+(1-$D$17)*(E6+F6)
C) =$D$17*D7/G3+(1-$D$17)
D) =$D$17*D7/G3+($D$17)*(E6+F6)

Question

Exhibit 11.8
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using Winter's method. The store has collected 12 quarters of data and needs your help to analyze the data. 
-Refer to Exhibit 11.8. What formula should be entered in cell E7 to compute the base level value for year 2 Quarter 1?
A) =$D$17+(1-$D$17)*(E6+F6) 
B) =$D$17*D7/G3+(1-$D$17)*(E6+F6) 
C) =$D$17*D7/G3+(1-$D$17) 
D) =$D$17*D7/G3+($D$17)*(E6+F6)

Quizplus · Accepted Answer

The formula in option B correctly calculates the base level value by considering the smoothing constant ($D$17), the previous base level (E6), and the seasonal factor (F6), while adjusting for the current observation (D7) and the seasonal index (G3).

Exhibit 11.8 The Following Questions Use the Data Below