Exhibit 18

question 92

Multiple Choice

Exhibit 18.1.The past monthly demands are shown below.The naïve method,that is,the one-period moving average method,is applied to make forecasts. Refer to Exhibit 18.1.What is the mean square error (MSE) of the forecasts?

• A)-1.67
• B)275.00
• C)91.67
• D)8.33

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Definitions:

Dividends Paid

The portion of a company's earnings distributed to shareholders, typically expressed as a dollar amount per share.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted to cash in the upcoming fiscal year.

Sales Capacity

The maximum volume or number of units a company can sell under current resources and market conditions.

Projected Future Sales

An estimate of the amount of sales or revenues that a company expects to achieve in a future period.