With Forecasting Error Being Measured in MAD (Mean Absolute Deviation),the

question 37

Multiple Choice

With forecasting error being measured in MAD (mean absolute deviation) ,the 3σ control limits imply ______.

• A)the probability that the forecasting errors are attributable to random variation is 3%
• B)the probability that the forecasting errors are attributable to random variation is 99.7%
• C)the probability that the forecasting errors are attributable to random variation is 2.3%
• D)the probability that the forecasting errors are attributable to random variation is 50%

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