Exhibit 11.4
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using the additive seasonal method. The store has collected 12 quarters of data and needs your help to analyze the data.
-Refer to Exhibit 11.4. What formula should be entered in cell E7 to compute the remaining expected levels?
A) =$J$3*(D7-D3) + (1-$J$3)*E6
B) =$J$3*(D7-D6) + (1-$J$3)*E6
C) =$J$4*(D7-D3) + (1-$J$4)*E6
D) =$J$4*(D7-D6) + (1-$J$4)*E6

Question

Exhibit 11.4
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using the additive seasonal method. The store has collected 12 quarters of data and needs your help to analyze the data. 
-Refer to Exhibit 11.4. What formula should be entered in cell E7 to compute the remaining expected levels?
A) =$J$3*(D7-D3) + (1-$J$3)*E6 
B) =$J$3*(D7-D6) + (1-$J$3)*E6 
C) =$J$4*(D7-D3) + (1-$J$4)*E6 
D) =$J$4*(D7-D6) + (1-$J$4)*E6

Quizplus · Accepted Answer

The formula in cell E7 should be =$J$3*(D7-D3) + (1-$J$3)*E6. This formula calculates the remaining expected levels by multiplying the probability of a success ($J$3) by the difference between the current day (D7) and the start day (D3), and then adding the product of the probability of a failure (1-$J$3) and the previous day's remaining expected levels (E6).

Exhibit 11.4 The Following Questions Use the Data Below