Given forecast errors of 5, 0,−4, and 3, what is the tracking signal?
A)3
B)1.33
C)4
D)12
E)0.75

Name: Given forecast errors of 5, 0,−4, and 3, what is the tracking signal? A)3 B)1.33 C)4 D)12 E)0.75
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Question

Quizplus · Accepted Answer

The tracking signal is calculated as the cumulative sum of forecast errors divided by the mean absolute deviation (MAD). Here, the cumulative sum of errors = 5 + 0 - 4 + 3 = 4. The MAD = (|5| + |0| + |-4| + |3|) / 4 = 12 / 4 = 3. Thus, the tracking signal = 4 / 3 = 1.33.

Given Forecast Errors of 5, 0,−4, and 3, What Is