Exhibit 11.11 The Following Questions Use the Data Below

question 5

Multiple Choice

Exhibit 11.11
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using seasonal indices. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is in the following table.
-Refer to Exhibit 11.11. What formula should be entered in cell C18 to compute the Seasonal Index value for quarter 1?

• A) =SUM($B$3:$B$14)/COUNTIF($B$3:$B$14,B18)
• B) =SUMIF($B$3:$B$14,B18,$G$3:$G$14)/COUNTIF($B$3:$B$14,B18)
• C) =SUMIF($B$3:$B$14,$G$3:$G$14)/COUNT($B$3:$B$14,B18)
• D) =SUMIF($B$3:$B$14,B18)/COUNTIF($B$3:$B$14,B18)

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Definitions:

Linear Relationship

A direct relationship between two variables where a change in one variable is directly proportional to a change in the other.

Reduction

The act of making something smaller or less in amount, degree, or size.

Nondiversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, often associated with market-wide risks.