An Operation Analyst Is Forecasting This Year's Demand for One

question 4

Multiple Choice

An operation analyst is forecasting this year's demand for one of his company's products based on the following historical data:
$$\begin{array} { | c | c | } \hline \text { Year } & \text { \# Sald } \\\hline 4 \text { years ago } & 10,000 \\\hline 3 \text { years ago } & 12,000 \\\hline \text { 2 years ago } & 18,000 \\\hline \text { Last year } & 20,000 \\\hline\end{array}$$
The previous trend line has predicted 18,500 for two years ago, and 19,700 for last year. What was the mean absolute deviation for these forecasts?

• A) 100
• B) 200
• C) 400
• D) 500
• E) 800

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Definitions:

Urban Areas

Regions characterized by higher population density and vast human features in comparison to areas surrounding them.

Population

The total number of people inhabiting a specific area or country.

Maximize Utility

The process or goal of obtaining the highest level of satisfaction or benefit possible from available resources or choices.

Households

Economic units consisting of all persons who occupy a housing unit, including single families, individuals living alone or with others, but who make joint financial decisions.