Question

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

Answer 1

Answer:

correct option is here B. About 14.3

Explanation:

given data

running sum of forecast errors RSFE = 500

mean absolute deviation MAD = 35

solution

we get here tracking signal that is express here as

tracking signal = $\frac{RSFE}{MAD}$     .................................1

put here value and we will get tracking signal

tracking signal = $\frac{500}{35}$

tracking signal = 14.3

so correct option is here B. About 14.3