Using the Sales Data on a Particular Model of a DVD

question 87

Multiple Choice

Using the sales data on a particular model of a DVD player shown below in Table 2, answer questions
Table 2
$\begin{array}{|l|c|c|c|}\hline \text { Month } & \text { Sales } & \text { Forecast 1 } & \text { Forecast 2 } \\\hline \text { Jan } & 35 & 30 & 33 \\\hline \text { Feb } & 29 & 28 & 32 \\\hline \text { Mar } & 39 & 43 & 35 \\\hline \text { Apr } & 42 & 40 & 45 \\\hline \text { May } & 51 & 48 & 52 \\\hline \text { Jun } & 56 & 55 & 52 \\\hline\end{array}$
-For the data in Table 2, which forecast is better using the mean absolute deviation (MAD) criterion given in the answer #11 and #12?

• A) Forecast 1
• B) Forecast 2
• C) Forecast 1 and 2 are identical, with equal MADs
• D) Neither forecast 1 nor forecast 2

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Definitions:

Oligopolistic Firm

A company that operates in an oligopoly, a market structure characterized by a small number of firms dominating the industry.

Price Policy

The strategic approach adopted by a company or government to set the price of goods or services, often aiming at achieving specific economic objectives.

Homogeneous Oligopolist

A firm that is part of an oligopoly in which the products offered by the competing firms are largely identical or very similar in nature.

Highly Concentrated Industry

An industry characterized by a small number of companies holding a large market share, which can lead to reduced competition and higher prices.