Exhibit 11.5
The following questions use the data below.
A store wants to predict quarterly sales. The owner has collected 3 years of sales data and wants your help in analyzing the data using the multiplicative seasonal effects model.
-Refer to Exhibit 11.5. What formula should be entered in cell F7 to compute the seasonal factor using the multiplicative seasonal effects model?
A) =$J$3*D4+(1-$J$3)*(E3+F3)
B) =$J$4*(D7/E7)+(1-$J$4)*F3
C) =$J$4*(E7/E6)+(1-$J$4)*E6
D) =$J$3*G3+(1-$J$3)*(D3+G3)

Question

Exhibit 11.5
The following questions use the data below.
A store wants to predict quarterly sales. The owner has collected 3 years of sales data and wants your help in analyzing the data using the multiplicative seasonal effects model. 
-Refer to Exhibit 11.5. What formula should be entered in cell F7 to compute the seasonal factor using the multiplicative seasonal effects model?
A) =$J$3*D4+(1-$J$3)*(E3+F3) 
B) =$J$4*(D7/E7)+(1-$J$4)*F3 
C) =$J$4*(E7/E6)+(1-$J$4)*E6 
D) =$J$3*G3+(1-$J$3)*(D3+G3)

Quizplus · Accepted Answer

The correct formula for computing the seasonal factor using the multiplicative seasonal effects model involves adjusting the current season's estimate based on the previous season's actual data and the forecast error. Option B correctly applies this by using the smoothing constant from cell $J$4, the current season's actual data (D7), the previous season's forecast (E7), and the previous season's seasonal factor (F3) in a formula that aligns with the multiplicative model's approach to updating seasonal factors.

Exhibit 11.5 The Following Questions Use the Data Below