Consider the Following Data Concerning the Performance of a Forecasting

question 185

Multiple Choice

Consider the following data concerning the performance of a forecasting method. $$\begin{array} { | r | l | l | } \hline \text { Month } & \begin{array} { c } \text { Actual } \\\text { Demand }\end{array} & \text { Forecast } \\\hline 1 & 300 & 270 \\2 & 200 & 280 \\3 & 270 & 260 \\4 & 250 & 270 \\5 & 310 & 250 \\\hline\end{array}$$

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

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Definitions:

Absolute Advantage

A condition where a country, individual, or firm can produce a good or service at a lower cost and more efficiently than others.

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The physical parts or elements of a computer system, such as the central processing unit (CPU), memory (RAM), storage devices, and peripherals, which work together to perform computing tasks.

Tariff

A financial charge instituted by a government on goods exported from or imported into a country.

Absolute Advantage

The ability of a country, individual, or firm to produce a good or service at a lower cost per unit than other producers.