A Company Has Actual Unit Demand for Three Consecutive Years

question 5

Multiple Choice

A company has actual unit demand for three consecutive years of 124,126 and 135.The respective forecasts for the same three years are 120,120 and 130.Which of the following is the resulting MAD value that can be computed from this data?

• A)1
• B)3
• C)5
• D)15
• E)123

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Definitions:

Mathematical Calculation

The process of solving a mathematical problem by using arithmetic operations and algorithms.

Profit-maximizing

The process or strategy of adjusting production and sales to achieve the highest possible profit levels.

Total Cost

The sum of fixed costs and variable costs incurred by a business in producing a good or service.

Output

The quantity of goods or services produced within a given period.