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 E7 to compute the remaining expected levels?
A) =$J$3*(D7/F3) + (1-$J$3)*E6
B) =$J$3*(D7/D6) + (1-$J$3)*E6
C) =$J$4*(D7/D3) + (1-$J$4)*E6
D) =$J$4*(D7/D6) + (1-$J$4)*E6

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 E7 to compute the remaining expected levels?
A) =$J$3*(D7/F3) + (1-$J$3)*E6 
B) =$J$3*(D7/D6) + (1-$J$3)*E6 
C) =$J$4*(D7/D3) + (1-$J$4)*E6 
D) =$J$4*(D7/D6) + (1-$J$4)*E6

Quizplus · Accepted Answer

The correct formula to compute the remaining expected levels involves using the smoothing constant from cell $J$3, applying it to the ratio of the current level (D7) to the initial level (F3), and then adding the weighted previous expected level (E6). This approach dynamically adjusts the expected level based on the current level and the previous expectation, incorporating the smoothing constant to balance between them.

Exhibit 11.5 The Following Questions Use the Data Below