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:

Deliberately

Done consciously and intentionally; often implying careful thought or planning.

Reinforcement

In psychology, the process of encouraging or establishing a pattern of behavior by providing rewards or consequences.

Schedule

A plan for carrying out a process or procedure, giving lists of intended events and times.

Social Learning Theory

A theory that proposes people learn from observing others, with the environment, behavior, and cognition acting as primary factors influencing learning.