The Past Monthly Demands Are Shown Below

question 69

Multiple Choice

The past monthly demands are shown below. The naïve method, that is, the one-period moving average method, is applied to make forecasts. What is the mean square error of the forecasts?

• A) −1.67
• B) 275.00
• C) 91.67
• D) 8.33

---

Definitions:

Invoice

The bill that the seller sends to the buyer.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure consistency and accuracy in financial records.

Company's Records

Documentation and files maintained by a company, detailing its financial transactions, legal obligations, and operational activities.

Cash Short

A situation where the amount of cash in a register or petty cash drawer is less than what the records indicate should be present.