The Demand for a Product for the Last Six Years

question 106

Multiple Choice

The demand for a product for the last six years has been 15, 15, 17, 18, 20, and 19. The manager wants to predict the demand for this time series using the following simple linear trend equation: tr_t = 12 + 2t. What are the forecast errors for the 5th and 6th years?

• A) 0, −3
• B) 0, +3
• C) +2, +5
• D) −2, −5
• E) −1, −4

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Definitions:

Calmative

An agent or approach that has a calming effect, reducing excitement or anxiety.

Designer Drugs

Synthetic substances created to mimic the effects of illegal drugs, often with modified chemical structures to evade law enforcement detection.

Physical Dependence

A physiological state where the body adapts to a substance, leading to withdrawal symptoms when that substance is reduced or stopped.

Withdrawal Symptoms

The unpleasant physical or psychological reactions that occur after ceasing or reducing intake of a substance that the body has become dependent on.