Table 118
a Manager Wants to Forecast the Monthly Demand
for

question 172

Multiple Choice

Table 11.8
A manager wants to forecast the monthly demand
for a machine the company produces.
$\begin{array} { | c | c | } \hline \text { Month } & \begin{array} { c } \text { No. Machines } \\\text { Sold }\end{array} \\\hline 1 & 50 \\2 & 65 \\3 & 52 \\4 & 56 \\5 & 55 \\6 & 60 \\\hline\end{array}$

-Use the information in Table 11.8. Calculate the MAD for months 4 through 6 for the weighted moving average forecasts. The weights are 0.50, 0.30, and 0.20, where 0.50 refers to the most recent demand.

• A) less than or equal to 2
• B) greater than 2 but less than or equal to 3
• C) greater than 3 but less than or equal to 4
• D) greater than 4

---

Definitions:

Legal Rights

The entitlements conferred upon individuals or entities by law, protecting their interests and allowing them to make legal claims.

Obligations

Duties or commitments under the law or by agreement that an individual or entity is required to fulfill.

Straight Life Insurance

A type of permanent life insurance where the insured pays a consistent premium throughout their lifetime, and the policy pays out a death benefit to the beneficiaries when the insured dies.

Loan Value

The maximum amount of money that a lender will provide to a borrower, often based on the value of the collateral pledged.