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 E3 to compute the base level when using the multiplicative seasonal effects method?
A) =AVERAGE($E$3:$E$6)
B) =AVERAGE(E3, E7, E11)
C) =AVERAGE($D$3:$D$6)
D) =AVERAGE(D3, D7, D11)

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 E3 to compute the base level when using the multiplicative seasonal effects method?
A) =AVERAGE($E$3:$E$6) 
B) =AVERAGE(E3, E7, E11) 
C) =AVERAGE($D$3:$D$6) 
D) =AVERAGE(D3, D7, D11)

Quizplus · Accepted Answer

The base level is the average sales for one year of data. This is calculated by taking the average of the sales data for the quarters where the seasonal index is 1 (i.e., the sales data in the winter quarters). This corresponds to the data in column D, so the formula should reference that column. The correct formula is =AVERAGE($D$3:$D$6).

Exhibit 11.5 The Following Questions Use the Data Below