Exhibit 11.12
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a seasonal regression model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is provided in the following table.
-Refer to Exhibit 11.12. What formula should be entered in cell E3 to compute the value for the indicator variable for year 1 Quarter 1?

Question

Exhibit 11.12
The following questions use the data below.
Joe's Sporting Goods wants to forecast quarterly sales figures using a seasonal regression model. The store has collected 12 quarters of data and needs your help to analyze the data. The relevant regression output is provided in the following table.  
-Refer to Exhibit 11.12. What formula should be entered in cell E3 to compute the value for the indicator variable for year 1 Quarter 1?
A) =IF($B$3<>$E$2,1,0) 
B) =IF($B3=E$2,1) 
C) =IF($B$3=$E$2,0,1) 
D) =IF($B3=E$2,1,0)

Quizplus · Accepted Answer

The formula to compute the value for the indicator variable for year 1 Quarter 1 should be =IF($B3=E$2,1,0), as it checks whether the value in column B (year) and row 3 (quarter) matches the specified year and quarter (in cells E2 and E3, respectively) and returns a value of 1 if true and 0 if false.

Exhibit 11.12 The Following Questions Use the Data Below