Exhibit 11.6 The Following Questions Use the Data Below

question 51

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 I16 to compute the forecast for time period 14?

• A) =I15+2*$H$14
• B) =G14+B16*H14
• C) =G14+3*H14
• D) =G12+H12

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economy within a certain period.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor directly used in the manufacturing process.

Average Cost

Generally refers to the average total cost, representing the per unit total cost of production, including both fixed and variable costs.

Average Total Cost Curve

A graphical representation showing how the average cost of production changes as the quantity of output is altered.