Exhibit 11.12 The Following Questions Use the Data Below

question 48

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 Excel command can be used in cells F4:F14 in lieu of a formula based on the regression statistics?

• A) =TREND($H$3:$H$14,$C$3:$G$14, C3:G3)
• B) =TREND($H$3:$H$14,$B$3:$G$14, B3:G3)
• C) =TREND($H$3:$H$14,$A$3:$G$14, A3:G3)
• D) =TREND($H$3:$H$14,$C$3:$D$14, C3:D3)

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Definitions:

Investment

Commitment of current resources in the expectation of deriving greater resources in the future.

Effective Annual Rate

The interest rate on an investment or loan which accounts for the effect of compounding over a given period.

Semi-annually Return

The rate of return on an investment calculated by compounding interest twice a year.

Investment

The action or process of allocating resources, usually money, with the expectation of generating an income or profit.