Home /
Expert Answers /
Operations Management /
a-find-the-tracking-signal-for-each-month-negative-values-should-be-indicated-by-a-minus-sign-r-pa703
(Solved): a. Find the tracking signal for each month. (Negative values should be indicated by a minus sign. R ...
a. Find the tracking signal for each month. (Negative values should be indicated by a minus sign. Round your answers to the nearest whole number.) b. Does the model used here give acceptable answers? No, the model's performance is poor. Yes, the model's performance is good.
Expert Answer
To calculate the tracking signal for each month, find the absolute value of the forecast error divided by the mean absolute deviation (MAD). The formula for tracking signal is: Tracking Signal = (Actual Demand - Forecast) / MAD Let's calculate the tracking signal for each month: April: Forecast: 258 Actual Demand: 208 Forecast Error: Actual Demand - Forecast = MAD: (rounded to 1 decimal place) Tracking Signal: (rounded to the nearest whole number) May: Forecast: 332 Actual Demand: 407 Forecast Error: Actual Demand - Forecast = MAD: (rounded to 1 decimal place)