Exhibit 11.1 The Following Questions Use the Data Below

question 60

Multiple Choice

Exhibit 11.1
The following questions use the data below.
Honest Al's Used Cars wants to predict how many cars are sold each month. He has collected data for 12 months. He needs your help in analyzing this data using moving averages.
-Refer to Exhibit 11.1. What Excel function will compute the mean squared error in cell C18 of the spreadsheet?

• A) =SUMXMY2(B7:B14,C7:C14)
• B) =SUMXMY2(B3:B14,C3:C14)/COUNT(C3:C14)
• C) =SUMXMY2(B7:B14,C7:C14)/COUNT(C7:C14)
• D) =SUMPRODUCT(B7:B14,C7:C14)/COUNT(C7:C14)

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Definitions:

Cost Of Discounts

The reduction in revenue a company faces when it offers products or services at a reduced price.

Receivables Balance

The total amount of money owed to a company by its customers for goods or services delivered, but not yet paid for.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

Average Daily Sales

The average amount of sales generated per day over a specific period, commonly used to assess business performance.