Which of the Following Is NOT a Use of the Error

question 25

Multiple Choice

Which of the following is NOT a use of the error estimate?

• A)To monitor erratic demand observations or outliers
• B)To determine when the forecasting method is no longer tracking actual demand and needs to be revised
• C)To set safety stocks or safety capacity
• D)To determine parameter values that provide the most accurate forecasts
• E)All the above are uses of the error estimate

---

Definitions:

Slope

Measures the steepness, incline, or grade of a line on a graph, representing the rate of change of the variables plotted on the axes.

Indeterminate

An outcome or situation that cannot be definitively determined or predicted due to the presence of too many unknown variables.

Straight Line

In geometry, the shortest distance between two points, characterized by its uniform direction and infinite length in both directions.

Vertical

A term used in economics and business to describe activities or entities that operate at different stages of the production process, from raw materials to final product.