1. Two methods are used to predict how many customers will call in for help in the next four days. The first method predicts the number of callers to be 23, 5, 14, and 20 for the four respective days. The second method predicts 20, 13, 14, and 20 for the four respective days. The actual number of callers turns out to be 23, 10, 15, and 19. Which method has the bigger forecast bias?
a- the second method
b- both are equally biased
c- both are not biased
d- the first method
2. Two methods are used to predict how many customers will call in for help in the next four days. The first method predicts the number of callers to be 23, 5, 14, and 20 for the four respective days. The second method predicts 20, 13, 14, and 20 for the four respective days. The actual number of callers turns out to be 23, 10, 15, and 19. Which method has the smaller mean squared error (MSE)?
a- both methods have the same MSE
b- the first method
c- the second method
d- both methods have the zero (0) MSE
3. Bakery A uses 80 bags of chocolate chips each year. The chocolate chips are purchased from a supplier for a price of $80 per bag and an ordering cost of $20 per order. Bakery A's annual inventory holding cost percentage is 40%. If bakery A's demand for the chip is double, what will be the percentage change in its economic order quantity?
a- 100% decrease
b- 41% increase
c- 41% decrease
d- 100% increase