Table 108
a Manager Wants to Forecast the Monthly Demand
for

Multiple Choice

Table 10.8
A manager wants to forecast the monthly demand
for a machine the company produces.
$$\begin{array} { | c | c | } \hline \text { Month } & \begin{array} { c } \text { No. Machines } \\\text { Sold }\end{array} \\\hline 1 & 50 \\2 & 65 \\3 & 52 \\4 & 56 \\5 & 55 \\6 & 60 \\\hline\end{array}$$
-Consider the following data concerning the performance of a forecasting method.
$$\begin{array} { | c | c | c | } \hline \text { Month } & \begin{array} { c } \text { Actual } \\\text { Demand }\end{array} & \text { Forecast } \\\hline 1 & 300 & 270 \\2 & 200 & 280 \\3 & 270 & 260 \\4 & 250 & 270 \\5 & 310 & 250 \\\hline\end{array}$$

A) The CFE is greater than 100, and the MAD is less than 50.
B) The CFE is less than 100, and the MAD is less than 50.
C) The CFE is less than 100, and the MAD is greater than 50.
D) The CFE is greater than 100, and the MAD is greater than 50.