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The Demand for a Product for the Last Six Years

Question 22

Multiple Choice

The demand for a product for the last six years has been 15, 15, 17, 18, 20, and 19. The manager wants to predict the demand for this time series using the following simple linear trend equation: trt = 12 + 2t. Use this equation to forecast the demand for this product, and then calculate the MAD.


A) MAD = 1.333
B) MAD = 1.6
C) MAD = 2.0
D) MAD = 2.333
E) MAD = 2.5

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