Table 8.1 the Management of an Insurance Company Monitors the Number of Number

question 150

Multiple Choice

Table 8.1
The management of an insurance company monitors the number of mistakes made by telephone service representatives for a company they have subcontracted with. The number of mistakes for the past several months appears in this table along with forecasts for errors made with three different forecasting techniques. The column labeled Exponential was created using exponential smoothing with an alpha of 0.30. The column labeled MA is forecast using a moving average of three periods. The column labeled WMA uses a 3-month weighted moving average with weights of 0.65, 0.25, and 0.10 for the most-to-least recent months.

-Using Table 8.1, what is the mean absolute percent error for months 6-10 using the exponential smoothing forecasts?

• A) less than 22%
• B) greater than or equal to 22% but less than 24%
• C) greater than or equal to 24% but less than 26%
• D) greater than 26%

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Definitions:

Metronidazole

An antibiotic and antiprotozoal medication used to treat a variety of infections, including bacterial vaginosis and pelvic inflammatory disease.

Syphilis

A sexually transmitted bacterial infection that can cause long-term complications or death if not treated properly with antibiotics.

Penicillin G

An antibiotic used to treat a variety of bacterial infections, part of the penicillin class of drugs.

Hepatocellular Carcinoma

A primary liver cancer, often associated with chronic liver diseases such as hepatitis or cirrhosis.