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A company has a MAD of 1 0 . It wants to have a 9 9 . 7 percent control limit on its forecasting system.

A company has a MAD of 10. It wants to have a 99.7 percent control limit on its forecasting system. Its most recent tracking signal value is 3.1. What can the company conclude from this information?
Multiple Choice
The forecasting model is operating acceptably.
The upper control value is less than 20.
It is using an inappropriate forecasting methodology.
The forecasting model is out of control and needs to be corrected.
The MAD value is incorrect.

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