You Are Hired as a Consultant to Advise a Small

question 94

Multiple Choice

You are hired as a consultant to advise a small firm on forecasting methodology.Based on your research you find the company has a MAD of 3.Its wants to have a 99.7 percent control limits on its forecasting system.It's most recent tracking signal value is 15.What should be your report to the company?

• 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)The company is using an inappropriate forecasting methodology

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Definitions:

Methylhexane

A type of hydrocarbon with a branched-chain structure, used in organic chemistry and industrial applications.

Propylbutane

A hydrocarbon with the formula C7H16, representing one of the various structural isomers of heptane.

Condensed Structural Formula

A method of representing the molecules of a compound using lines for bonds and showing the arrangement of connected atoms, but omitting bonding hydrogen atoms.

Methylbutane

An organic compound also known as isopentane, a type of alkane with the formula C5H12.