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The classified department of a monthly magazine has used a combination of quantitative and qualitative methods to forecast sales of advertising space. Results over a

The classified department of a monthly magazine has used a combination of quantitative and qualitative methods to forecast sales of advertising space. Results over a 20-month period are as follows:

Month Error Month Error
1 -8 11 1
2 -2 12 6
3 3 13 9
4 8 14 2
5 10 15 2
6 4 16 -2
7 1 17 -6
8 -5 18 -7
9 -10 19 -5
10 -3 20 -1

Click here for the Excel Data File

a. Compute a tracking signal for months 11 through 20. To do so, compute an initial value of MAD for month 11, and then update it for each month using exponential smoothing with = .2. (Leave no cells blank - be certain to enter "0" wherever required. Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.)

b-1. Using the first half of the data, construct a control chart with 2s limits. (Round your intermediate calculations to 3 decimal places and final answer to 2 decimal places.)

b-2. What can you conclude? multiple choice

All errors are within these limits.

Only the error for month 9 is outside of the limits.

Only the error for month 5 is outside of the limits.

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