Exhibit 11.1 The Following Questions Use the Data Below

question 102

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 root mean squared error in cell C18 of the spreadsheet?

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

---

Definitions:

Farmers' Incomes

Refers to the financial earnings of individuals or families engaged in agriculture, significantly influenced by market prices, yield, and costs.

Demand Graph

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Inelastic Demand

A characteristic of demand where the quantity demanded changes minimally in response to price changes.

Total Farm Income

The cumulative financial earnings from all farm production and related activities over a specific period.