Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
$$\begin{array} { | c | c | }
\hline \text { Month } & \begin{array} { c }
\text { No. Machines } \
\text { Sold }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 52 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$$
-Use the information in Table 10.8.Calculate the MAD for months 4 through 6 for the three-month moving average forecasts.
A) less than or equal to 2
B) greater than 2 but less than or equal to 4
C) greater than 4 but less than or equal to 6
D) greater than 6

Question

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { No. Machines } \
\text { Sold }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 52 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$$
-Use the information in Table 10.8.Calculate the MAD for months 4 through 6 for the three-month moving average forecasts.
A) less than or equal to 2
B) greater than 2 but less than or equal to 4
C) greater than 4 but less than or equal to 6
D) greater than 6

Quizplus · Accepted Answer

The three-month moving average forecasts for months 4, 5, and 6 are 55.67, 57.67, and 54.33, respectively. The absolute deviations are 0.33, 2.67, and 5.67. The MAD is the average of these deviations, which is 2.89, falling in the range greater than 2 but less than or equal to 4.

Table 108 a Manager Wants to Forecast the Monthly Demand for

Table 108
a Manager Wants to Forecast the Monthly Demand
for