Using the Sales Data on a Particular Model of a DVD

question 46

Multiple Choice

Using the sales data on a particular model of a DVD player shown below in Table 2, answer questions
Table 2
$\begin{array}{|l|c|c|c|}\hline \text { Month } & \text { Sales } & \text { Forecast 1 } & \text { Forecast 2 } \\\hline \text { Jan } & 35 & 30 & 33 \\\hline \text { Feb } & 29 & 28 & 32 \\\hline \text { Mar } & 39 & 43 & 35 \\\hline \text { Apr } & 42 & 40 & 45 \\\hline \text { May } & 51 & 48 & 52 \\\hline \text { Jun } & 56 & 55 & 52 \\\hline\end{array}$
-The mean absolute deviation (MAD) for forecast 1 is:

• A) less than or equal to 2.0.
• B) more than 2.0 but less than or equal to 2.5.
• C) more than 2.5 but less than or equal to 3.0.
• D) more than 3.0 but less than or equal to 3.5.

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Definitions:

Level of Significance

A threshold in statistical analysis that measures the probability of rejecting a true null hypothesis; commonly set at values like 0.05 or 0.01.

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Null Hypothesis

A default hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.

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