Question

The __________ is used to flag a forecasting model that is getting out of control.- mean absolute percentage error (MAPE) - tracking signal - mean forecast error (MFE) - mean absolute deviation (MAD)

Answer 1

tracking signal

Step-by-step explanation:

Thre tracking signal is a ratio between:

the sum all the forecasting errors:

∑(actual - forecast)

and the mean abosolute deviation

which is the sum of the errors ∑(actual - forecast) over the numbers forecast done.

Leaving the following formula:

∑(actual - forecast)/(∑(actual - forecast)/n)

It indicates if there is a bias is present in the model. It check if validity.