Given the demand and forecast values shown in the table below:

The forecast error for September is
A)10.00.
B)-10.00.
C)1.00.
D)39.00.

Question

Given the demand and forecast values shown in the table below:

The forecast error for September is
A)10.00. 
B)-10.00. 
C)1.00. 
D)39.00.

Quizplus · Accepted Answer

The forecast error for September is calculated by subtracting the forecasted value from the actual demand value. Therefore, the forecast error for September is: 
Actual demand - Forecasted demand = 400 - 390 = 10 
Since the actual demand is greater than the forecasted demand, the forecast error is positive. Therefore, the answer is B) -10.00, as it is the only choice that represents a negative forecast error.

Given the Demand and Forecast Values Shown in the Table