The Demand for a Product for the Last Six Years

question 22

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. Use this equation to forecast the demand for this product, and then calculate the MAD.

• A) MAD = 1.333
• B) MAD = 1.6
• C) MAD = 2.0
• D) MAD = 2.333
• E) MAD = 2.5

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Definitions:

Serial-Position Effect

A psychological phenomenon in which people tend to recall the first and last items in a series best, and the middle items worst.

History Exam

A test or assessment focused on historical facts, events, figures, and concepts to evaluate understanding or knowledge.

Serial-Position Effect

A psychological phenomenon where an individual recalls the first and last items in a series best, and the middle items worst.

Items at the Beginning

Refers to the phenomenon where items that appear early in a list are more likely to be remembered than items in the middle.