A Concert Promoter Is Forecasting This Year's Attendance for One

question 107

Multiple Choice

A concert promoter is forecasting this year's attendance for one of his concerts based on the following historical data: $$\begin{array} { | l | c | } \hline { \text { Year } } & \text { Attendance } \\\hline \text { Four Years ago } & 10,000 \\\hline \text { Three Years ago } & 12,000 \\\hline \text { Two Years ago } & 18,000 \\\hline \text { Last Year } & 20,000 \\\hline\end{array}$$
The previous trend line had predicted 18,500 for two years ago, and 19,700 for last year. What was the mean absolute deviation for these forecasts?

• A) 100
• B) 200
• C) 400
• D) 500
• E) 800

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Definitions:

Personnel Expenses

Costs related to the compensation of employees, including wages, benefits, and taxes.

Planning Budget

A budget created for a particular level of activity; it helps management to plan for upcoming expenses and revenues based on projected operations.

Selling and Administrative Expenses

Costs incurred by a company not directly tied to the production of goods or services, including sales, marketing, and administrative functions.

Units

The basic measure of quantity in accounting, production, or inventory, often representing a single item or instance of a product.