Exhibit 11 -Refer to Exhibit 11

question 49

Multiple Choice

Exhibit 11.2
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 weighted moving averages.
$\begin{array}{|c|c|c|c|c|c|c|}\hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } & \text { F } \\\hline 1 & & \text { Number of } & \text { 2-Month Weighted } & & & \\\hline 2 & \text { Time Period } & \text { Cars Sold } & \text { Moving Avg. } & & \text { Weights } & \\\hline 3 & 1 & 70 & & & \text { w1 } & 0.244 \\\hline 4 & 2 & 80 & & & \text { w2 } & 0.756 \\\hline 5 & 3 & 66 & & & \text { sum } & 1.000 \\\hline 6 & 4 & 74 & 76.59 & & & \\\hline 7 & 5 & 64 & 67.95 & & & \\\hline 8 & 6 & 76 & 71.56 & & & \\\hline 9 & 7 & 72 & 66.93 & & & \\\hline 10 & 8 & 82 & 75.02 & & & \\\hline 11 & 9 & 82 & 74.44 & & & \\\hline 12 & 10 & 76 & 82.00 & & & \\\hline 13 & 11 & 84 & 80.54 & & & \\\hline 14 & 12 & 80 & 77.95 & & & \\\hline 15 & & & & & & \\\hline 16 & & \text { MSE } & 26.72 & & & \\\hline\end{array}$

-Refer to Exhibit 11.2.Which cell in the spreadsheet is the objective cell in the Risk Solver Platform RSP) task pane area?

• A)F3
• B)F4
• C)F5
• D)C16

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Definitions:

Minimum Required Rate Of Return

The lowest return on investment that a person or organizational entity, like a company, would accept for a given investment.

Stockholders' Equity

Represents the owners' claim after subtracting total liabilities from total assets; it consists of initial capital investment, retained earnings, and additional paid-in capital.

Net Operating Income

The income that comes from a firm's primary business activities, not including the subtraction of interest and taxes.

Average Operating Assets

The average value of the assets involved in the daily operations of a business over a specific period, used to measure efficiency.