Table 10.7
$$\begin{array} { | c | c | }
\hline \text { Month } & \begin{array} { c }
\text { Units Sold } \
( 00 )
\end{array} \
\hline 1 & 150 \
2 & 145 \
3 & 160 \
4 & 180 \
5 & 220 \
\hline
\end{array}$$
-Use the information in Table 10.7.The cumulative sum of errors CFE from months 2 through 5 is
A) less than or equal to 80.
B) greater than 80 but less than or equal to 85.
C) greater than 87 but less than or equal to 90.
D) greater than 90.

Question

Table 10.7
 $$\begin{array} { | c | c | } 
\hline \text { Month } & \begin{array} { c } 
\text { Units Sold } \
( 00 )
\end{array} \
\hline 1 & 150 \
2 & 145 \
3 & 160 \
4 & 180 \
5 & 220 \
\hline
\end{array}$$
-Use the information in Table 10.7.The cumulative sum of errors CFE from months 2 through 5 is
A) less than or equal to 80.
B) greater than 80 but less than or equal to 85.
C) greater than 87 but less than or equal to 90.
D) greater than 90.

Quizplus · Accepted Answer

To find the cumulative sum of errors from months 2 through 5, we need to first calculate the forecasted sales for each month using the naive method. The forecasted sales for month 2 would be 150 (the actual sales for month 1), for month 3 it would be 145 (the actual sales for month 2), and so on.

Then, we can calculate the error for each month by subtracting the forecasted sales from the actual sales. For example, the error for month 2 would be 145 - 150 = -5.

The cumulative sum of errors for months 2 through 5 would be the sum of the errors for each of those months. Adding up the errors, we get:

-5 + 15 + 20 + 40 = 70

Therefore, the cumulative sum of errors from months 2 through 5 is greater than 80 but less than or equal to 85, which means the correct answer is B.

Table 107 -Use the Information in Table 10