A Company Has Calculated Its Running Sum of Forecast Errors

question 6

Multiple Choice

A company has calculated its running sum of forecast errors to be 500, and its mean absolute deviation is exactly 35. Which of the following is the company's tracking signal?

• A) Cannot be calculated based on this information
• B) About 14.3
• C) More than 35
• D) Exactly 35
• E) About 0.07

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time; the lowest level at which an individual can experience a sensation.

Difference Threshold

The smallest change in sensation that can be perceived half the time by an individual, also referred to as the just noticeable difference (JND).

Cataracts

A medical condition where the lens of the eye becomes progressively opaque, resulting in blurred vision.

Signal Detection Theory

An approach to evaluate the capability of identifying information-carrying patterns from random ones that interfere with the information.