You Are Using an Exponential Smoothing Model for Forecasting

question 10

Multiple Choice

You are using an exponential smoothing model for forecasting.The running sum of the forecast error statistics (RSFE) are calculated each time a forecast is generated.You find the last RSFE to be 34.Originally the forecasting model used was selected because it's 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 system?

• A)85
• B)60
• C)13.6
• D)12.9
• E)8

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