If several consecutive values of tracking signal turn out to be negative, then the forecasting method may be
A) overestimating demand
B) underestimating demand
C) inaccurately estimating, but not consistently over or underestimating
D) need more information, like sign of MAD to conclude correctly
E) none of the above

Question

Quizplus · Accepted Answer

A negative tracking signal indicates that the actual demand is consistently less than the forecasted demand, suggesting that the forecasting method is overestimating demand.

If Several Consecutive Values of Tracking Signal Turn Out to Be