Exhibit 11.6 The Following Questions Use the Data Below

question 10

Multiple Choice

Exhibit 11.6
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 double moving average model with k = 4.
-Refer to Exhibit 11.6. What formula should be entered in cell F9 to compute the second average when using the double moving average method with k = 4?

• A) =Average($E$3:$E$9)
• B) =Average($D$3:$D$9)
• C) =Average(D3:D9)
• D) =Average(D6:D9)

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Definitions:

Total Sales

The total revenue generated from selling goods or services over a particular period, before any deductions such as returns or discounts.

Herfindahl Index

An index that gauges the proportions of entities in a market sector, highlighting the extent of competition among them.

Pure Monopolist

A market structure where a single company is the sole provider of a product or service, with no close substitutes, giving it significant control over price.

Herfindahl Index

A measure of market concentration to assess the competitive landscape, calculated by summing the squares of the market shares of all firms in the industry.