Exhibit 18

question 66

Multiple Choice

Exhibit 18.1.The past monthly demands are shown below.The naive method,that is,the one-period moving average method,is applied to make forecasts. Refer to Exhibit 18.1.What is the mean absolute deviation (MAD) of the forecasts?

• A)-1.67
• B)25.00
• C)91.67
• D)8.33

---

Definitions:

Benefit

The advantage or gain received from a decision, action, or policy, often used in the analysis of choices in economics.

Bounded Rationality

A basis for decision making that leads to a choice that is close to but not exactly the one that leads to the best possible economic outcome; the “good enough” method of decision making.

Closeout Sale

A type of sale with significantly reduced prices, aimed at clearing out inventory.

Energy Efficiency

The goal or strategy of reducing the amount of energy required to provide products and services, enhancing operational performance while reducing energy use.