Business Analytics Quiz
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PREDICTIVE MODELING
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A distribution center compares two forecasts over a low-volume week and a high-volume week. Actual demand was 100 and 1,000 units. Model A had absolute errors of 40 units in both weeks. Model B had absolute errors of 10 units in the low-volume week and 100 units in the high-volume week. The operations manager primarily wants to minimize the average number of misallocated units.
Which model and justification best align with the manager's objective?
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