A Counseling Service Records the Number of Calls to Their

question 57

Multiple Choice

A counseling service records the number of calls to their hotline for the last year. Based on MAD, which of these models does the best job of forecasting? $$\begin{array} { | l | c | } \hline { \text { Month } } & \text { Demand } \\\hline \text { Tanuary } & 111 \\\hline \text { February } & 127 \\\hline \text { March } & 146 \\\hline \text { April } & 159 \\\hline \text { May } & 165 \\\hline \text { Tune } & 165 \\\hline \text { Tuly } & 178 \\\hline \text { August } & 182 \\\hline \text { September } & 191 \\\hline \text { October } & 208 \\\hline \text { November } & 223 \\\hline \text { December } & 228 \\\hline\end{array}$$

• A)a simple moving average of three periods
• B)a simple moving average of five periods
• C)a weighted moving average of .7, .2, .1
• D)a weighted moving average of .5, .2, .2, .1

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Definitions:

Random Sample

A sample drawn in such a way that each member of the population has an equal chance of being included.

Point Estimate

The best single guess for a population parameter based on sample data. It represents a single value estimate of a parameter.

Population Parameter

A value that represents a characteristic of an entire population, such as its mean or standard deviation.

Random Sample

A subset of individuals chosen from a larger set, where each member has an equal chance of being selected, ensuring unbiased representation.