Company Has a MAD of 10

question 30

Multiple Choice

company has a MAD of 10.Its wants to have a 99.7 percent control limits on its forecasting system.It's 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

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Definitions:

Utility

A measure of satisfaction or benefit that a consumer receives from consuming goods and services.

Consumer Derives

The satisfaction or utility that a consumer obtains from the consumption of goods and services.

Total Utility

The complete fulfillment obtained from the consumption of a specific overall amount of a product or service.

Satisfaction

The feeling of fulfillment or contentment one derives from meeting a need or desire.