Table 11.8.
$\begin{array} { | c | c | }
\hline \text { Month } & \begin{array} { c }
\text { No. Machines } \
\text { Sold }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 52 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$
-Use the information in Table 11.8. 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 11.8.
$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { No. Machines } \
\text { Sold }
\end{array} \
\hline 1 & 50 \
2 & 65 \
3 & 52 \
4 & 56 \
5 & 55 \
6 & 60 \
\hline
\end{array}$
-Use the information in Table 11.8. 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 averages for months 4, 5, and 6 are 55.67, 57.67, and 56.33, respectively. The absolute deviations are 0.33, 2.67, and 3.67. The MAD is the average of these deviations: (0.33 + 2.67 + 3.67) / 3 = 2.22, which is greater than 2 but less than or equal to 4.

Table 118 -Use the Information in Table 11