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 formula should be entered in cell C13 to compute the 4-month moving average forecast for month 11?
A) =AVERAGE(B9:B12)/4
B) =AVERAGE(B7+B10)
C) =AVERAGE(A9:A12)
D) =AVERAGE(B9:B12)

Question

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 formula should be entered in cell C13 to compute the 4-month moving average forecast for month 11?
A) =AVERAGE(B9:B12)/4 
B) =AVERAGE(B7+B10) 
C) =AVERAGE(A9:A12) 
D) =AVERAGE(B9:B12)

Quizplus · Accepted Answer

The formula to compute a 4-month moving average forecast is to average the sales for the previous 4 months. Thus, we need to use the AVERAGE function to calculate the average of the data range B9:B12, which gives us the answer =AVERAGE(B9:B12). Therefore, the correct formula to enter in cell C13 is D) =AVERAGE(B9:B12).

Exhibit 11.1 The Following Questions Use the Data Below