Question

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

Answer 1

The tracking signal can be calculated by dividing the sum of the forecast errors by the mean absolute deviation (MAD). The forecast errors given are 5, 0, -4, and 3. The tracking signal is 1.33.

Step-by-step explanation:

The tracking signal can be calculated by dividing the sum of the forecast errors by the mean absolute deviation (MAD). The forecast errors given are 5, 0, -4, and 3. The sum of the forecast errors is 5 + 0 - 4 + 3 = 4. The MAD is the average of the absolute values of the forecast errors, which is (5 + 0 + 4 + 3)/4 = 3.

Therefore, the tracking signal is 4/3 = 1.33.

Answer 2

Given forecast errors of 5, 0,−4, and 3, the tracking signal is approximately B. 1.33.

Step-by-step explanation:

The tracking signal is calculated by summing the forecast errors and dividing by the mean absolute deviation (MAD) of the forecast errors.

Given forecast errors of 5, 0, −4, and 3, we can find the tracking signal by summing the forecast errors and dividing by the mean absolute deviation of the forecast errors.

The mean absolute deviation (MAD) is the average of the absolute values of the forecast errors.

In this case, the forecast errors are 5, 0, −4, and 3, so the sum is (5 + 0 + (−4) + 3) = 4, and the MAD is ((|5| + |0| + |−4| + |3|)/4) = 3.

The tracking signal is then calculated by dividing the sum of the forecast errors by the MAD, so (4/3) ≈ 1.33.

Therefore, the correct answer is B) 1.33.