Exhibit 11.5 The Following Questions Use the Data Below

question 76

Multiple Choice

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

---

Definitions:

Equal Annual Cash Flows

A series of identical cash amounts that occur at equal intervals over a period of time, commonly used in financial analysis.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Withdraw

To remove something from consideration or usage, or to take money out of a bank account.

Invest Enough Money

The process of allocating adequate financial resources to opportunities, projects, or assets to achieve desired outcomes or returns.