Exhibit 11.12 The Following Questions Use the Data Below

question 31

Multiple Choice

Exhibit 11.12
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a seasonal regression model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is provided in the following table.
-Refer to Exhibit 11.12. What formula should be entered in cell E3 to compute the value for the indicator variable for year 1 Quarter 1?

• A) =IF($B$3<>$E$2,1,0)
• B) =IF($B3=E$2,1)
• C) =IF($B$3=$E$2,0,1)
• D) =IF($B3=E$2,1,0)

---

Definitions:

Savings Account

A deposit account held at a bank that provides interest on the funds deposited.

Lump Sum

An individual disbursement occurring at a certain point, in contrast to periodic payments carried out sequentially.

Proceeds

The amount of money received from a sale or transaction.

Interest

The cost of borrowing money, typically expressed as a percentage of the principal, paid by the borrower for the use of lender’s funds.