Exhibit 11.5 The Following Questions Use the Data Below

question 121

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 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)

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Definitions:

Wheel of Retailing

is a concept that illustrates how new retailing forms often start at a low price point with minimal services before evolving into more established forms with higher costs and services.

Competitive Foothold

A strategic position obtained by a company in a market that gives it an advantage over its competitors.

Wholesalers

Entities that sell products in large quantities, typically to retailers or other intermediaries, rather than to the final consumer.

Distribution Channel

refers to the path or route through which goods and services travel from the producer to the final user or consumer.