Exhibit 11.1 The Following Questions Use the Data Below

question 60

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 mean squared error in cell C18 of the spreadsheet?

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

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Definitions:

Other-things-equal Assumptions

A principle in economics which suggests that the effect of one economic variable on another can be determined by holding all other influencing factors constant, commonly referred to as ceteris paribus.

Vertical Intercept

The point at which a line meets the vertical axis of a graph.

Slope

In economics, slope can represent the rate of change between two variables, often used in the context of supply and demand curves.

Vertical Intercept

The point where a line or curve crosses the vertical axis of a graph, indicating the value of the dependent variable when the independent variable is zero.