Table 108
a Manager Wants to Forecast the Monthly Demand
for

question 26

Multiple Choice

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
$$\begin{array} { | c | c | } \hline \text { Month } & \begin{array} { c } \text { No. Machines } \\\text { Sold }\end{array} \\\hline 1 & 50 \\2 & 65 \\3 & 52 \\4 & 56 \\5 & 55 \\6 & 60 \\\hline\end{array}$$
-Consider the following data concerning the performance of a forecasting method.
$$\begin{array} { | c | c | c | } \hline \text { Month } & \begin{array} { c } \text { Actual } \\\text { Demand }\end{array} & \text { Forecast } \\\hline 1 & 300 & 270 \\2 & 200 & 280 \\3 & 270 & 260 \\4 & 250 & 270 \\5 & 310 & 250 \\\hline\end{array}$$

• A) The CFE is greater than 100, and the MAD is less than 50.
• B) The CFE is less than 100, and the MAD is less than 50.
• C) The CFE is less than 100, and the MAD is greater than 50.
• D) The CFE is greater than 100, and the MAD is greater than 50.

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Definitions:

Tolerance for Ambiguity

The degree to which an individual is comfortable with uncertainty, unpredictability, conflicting directions, and multiple demands.

Idea Champion

An individual within an organization who passionately supports, promotes, and believes in the potential of an idea or project, often encouraging its adoption and implementation.

Intrapreneur

An employee within a company who promotes innovative product development and marketing by leveraging entrepreneurial skills.

Research and Development

A business or government activity that involves the investment of resources in innovation and improvement of products, services, or processes.