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A Bias Error Results from Unpredictable Factors That Cause the Forecast

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A bias error results from unpredictable factors that cause the forecast to deviate from actual demand.


Definitions:

Standard Errors

Measures of the statistical accuracy of an estimate, indicating the variability of an estimate from sample to sample.

Control Chart

A tool used in statistical quality control to monitor, control, and identify whether a manufacturing or business process is in a state of statistical control.

Control Limits

Control limits are statistical boundaries set in quality control processes to identify when a process is out of control or exhibits unusual variability.

Standard Errors

Estimates of the standard deviation of a sampling distribution, indicating the precision of an estimate.

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