The Past Monthly Demands Are Shown Below

question 6

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. If the demand in May appears to be 35, what is the residual (error) for May?

• A) 35
• B) 0
• C) 68.75
• D) 6.25

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