You Are Using an Exponential Smoothing Model for Forecasting

question 26

Multiple Choice

You are using an exponential smoothing model for forecasting. The running sum of the forecast error statistics (RSFE) is calculated each time a forecast is generated. You find the last RSFE to be 34. Originally, the forecasting model used was selected because of its relatively low MAD of 0.4. To determine when it is time to re-evaluate the usefulness of the exponential smoothing model, you compute tracking signals. Which of the following is the resulting tracking signal?

• A) 85
• B) 60
• C) 13.6
• D) 12.9
• E) 8

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Definitions:

Coping Strategy

A method or technique used to manage or overcome demands and conflicts in life.

Repression

The unconscious exclusion of painful impulses, desires, or fears from the conscious mind.

Denial

A psychological defense mechanism where an individual refuses to accept reality or facts, often as a way to protect themselves from uncomfortable feelings.

Survivor

A person who has lived through a challenging or life-threatening event.