The Dominguez Hills Company has the following forecasts generated by two forecasting methods. Actual sales for...

Transcribed Image Text:

The Dominguez Hills Company has the following forecasts generated by two forecasting methods. Actual sales for the same time periods are shown below: YEAR SALES FORECAST 1 FORECAST 2 1 895 880 924 23 + 860 844 860 915 905 906 4 915 939 925 567 815 828 799 865 841 855 00 845 885 850 878 822 914 8 Compute the tracking signal for each forecasting method. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter a negative value, if any. Tracking signal (method 1): Tracking signal (method 2): Why is tracking signal important in assessing the performance of a forecasting model? If the tracking signal falls outside preset control limits, there is a bias problem with the forecasting method. within the limits and the second forecasting method Assuming that the control limit for the tracking signal is 4, the first forecasting method is is within the limits. The Dominguez Hills Company has the following forecasts generated by two forecasting methods. Actual sales for the same time periods are shown below: YEAR SALES FORECAST 1 FORECAST 2 1 895 880 924 23 + 860 844 860 915 905 906 4 915 939 925 567 815 828 799 865 841 855 00 845 885 850 878 822 914 8 Compute the tracking signal for each forecasting method. Do not round intermediate calculations. Round your answers to two decimal places. Use a minus sign to enter a negative value, if any. Tracking signal (method 1): Tracking signal (method 2): Why is tracking signal important in assessing the performance of a forecasting model? If the tracking signal falls outside preset control limits, there is a bias problem with the forecasting method. within the limits and the second forecasting method Assuming that the control limit for the tracking signal is 4, the first forecasting method is is within the limits.