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The Demand for a Product for the Last Six Years

Question 4

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.What are the forecast errors for the 5th and 6th years?


A) 0,-3
B) 0,+3
C) +2,+5
D) -2,-5
E) -1,-4

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