A Company Has a MAD of 10

question 96

Multiple Choice

A company has a MAD of 10. It wants to have a 99.7 percent control limit on its forecasting system. Its most recent tracking signal value is 3.1. What can the company conclude from this information?

• A) The forecasting model is operating acceptably.
• B) The forecasting model is out of control and needs to be corrected.
• C) The MAD value is incorrect.
• D) The upper control value is less than 20.
• E) It is using an inappropriate forecasting methodology.

---

Definitions:

Valid Contract

An agreement that is legally binding on both parties.

Domestic Relationships

Relationships defined by family ties or living arrangements, including marriage, partnership, and familial connections.

Legal Presumption

A rule that requires a court or tribunal to assume a fact is true until it is disproven by evidence to the contrary.

Commercial Arrangements

Agreements or transactions between businesses or entities that are commercial in nature, often involving the exchange of goods or services.