After using your forecasting model for six months, you decide to test it using MAD and a

Question:

After using your forecasting model for six months, you decide to test it using MAD and a tracking signal.

Here are the forecast and actual demands for the six-month period:

Period Forecast Actual May 450 500 June 500 550 July 550 400 August 600 500 September 650 675 October 700 600

a. Find the tracking signal.

b. Decide whether your forecasting routine is acceptable.TW-111

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