The demand for a product for the last six years has been 15, 15, 17, 18, 20, and 19. The manager wants to predict the demand for this time series using the following simple linear trend equation: tr_t = 12 + 2t. Use this equation to forecast the demand for this product, and then calculate the MAD. A) MAD = 1.333 B) MAD = 1.6 C) MAD = 2.0 D) MAD = 2.333 E) MAD = 2.5

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XYZ Company, Annual Data
 11ead627_0a0d_daf7_93a1_3d8d54c1e7a0_TB7056_00 MAD = (|1| + |−1| + |−1| + |−2| + |−2| + |−5|)/6 = 12/6 = 2

The Demand for a Product for the Last Six Years