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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Definitions:

Factory Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and management salaries.

Used

Previously owned or operated, indicating items or equipment that are not new and have been utilized before.

Factory Building

A structure designed for manufacturing processes, where goods are produced or assembled by manpower, machinery, or both.

Utilities

Companies that provide essential services such as water, electricity, or natural gas to the public.