Which of the Following Is True

question 84

Multiple Choice

Which of the following is true?

• A) Forecast errors cannot be negative.
• B) Forecast errors are negative when the forecasted rate exceeds the realized rate.
• C) Absolute forecast errors are negative when the forecasted rate exceeds the realized rate.
• D) None of the above.

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Definitions:

EMV

Expected Monetary Value, a concept in decision making and risk management that calculates the average outcome when the future includes scenarios that may or may not happen.

Capacity Decision

Decisions related to the amount of resources needed by an organization to meet changing demands for its products.

Process-focused Shop

A production facility organized around processes to facilitate low-volume, high-variety production.

Repetitive Focus

A production strategy where the same products or services are produced in high volumes over a long period using a dedicated set of resources.