The past monthly demands are shown below. The naïve method, that is, the one-period moving average method, is applied to make forecasts. If the demand in May appears to be 35, what is the residual (error) for May?
A) 35
B) 0
C) 68.75
D) 6.25

Question

The past monthly demands are shown below. The naïve method, that is, the one-period moving average method, is applied to make forecasts.  If the demand in May appears to be 35, what is the residual (error) for May?
A) 35 
B) 0 
C) 68.75 
D) 6.25

Quizplus · Accepted Answer

The Answer of The past monthly demands are shown below. The naïve method, that is, the one-period moving average method, is applied to make forecasts.  If the demand in May appears to be 35, what is the residual (error) for May?
A) 35 
B) 0 
C) 68.75 
D) 6.25

The Past Monthly Demands Are Shown Below