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:

Dividend

A portion of a company's earnings that is paid to shareholders, typically on a quarterly basis.

Dividend Level

The amount of dividend payment declared by a company per share, usually expressed in a currency value.

Stock Price

The current price at which a share of a company is trading on the stock market.

Signaling Theory

A concept in economics and finance that suggests that decisions made by companies can convey information to investors and the market about the firm's future prospects.