Table 10.9
$$\begin{array} { | c | c | c | }
\hline \text { Quarter } & \begin{array} { c }
\text { Forecasted } \
\text { Demand } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Demand } \
\text { (Units) }
\end{array} \
\hline 1 & 85 & 95 \
2 & 55 & 55 \
3 & 70 & 45 \
4 & 60 & 75 \
\hline
\end{array}$$
-Use the information in Table 10.9.What is the cumulative sum of forecast errors for the data?
A) 0 units
B) greater than 0, but less than or equal to 25 units
C) greater than 25, but less than or equal to 50 units
D) greater than 50 units

Question

Table 10.9
 $$\begin{array} { | c | c | c | } 
\hline \text { Quarter } & \begin{array} { c } 
\text { Forecasted } \
\text { Demand } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Demand } \
\text { (Units) }
\end{array} \
\hline 1 & 85 & 95 \
2 & 55 & 55 \
3 & 70 & 45 \
4 & 60 & 75 \
\hline
\end{array}$$
-Use the information in Table 10.9.What is the cumulative sum of forecast errors for the data?
A) 0 units
B) greater than 0, but less than or equal to 25 units
C) greater than 25, but less than or equal to 50 units
D) greater than 50 units

Quizplus · Accepted Answer

The cumulative sum of forecast errors is the sum of the differences between the forecasted demand and the actual demand for each quarter. In this case, the cumulative sum of forecast errors is:(85 - 95) + (55 - 55) + (70 - 45) + (60 - 75) = -20 unitsTherefore, the correct answer is A: 0 units.

Table 109 -Use the Information in Table 10