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:

Environmental Control

The practice of managing and manipulating the conditions of a local environment, including temperature, humidity, and air quality.

Positive Reinforcement

A technique in behavior management that increases the likelihood of a behavior by associating it with positive outcomes or rewards.

Expert Power

The influence a person holds over others due to their skills or knowledge in a specific domain.

Psychological Power

The influence or control over others' beliefs, emotions, or behaviors through persuasive, charismatic, or leadership abilities, rather than through coercion or force.