Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 10 months. The forecasts and actual sales are as follows: Month 1 2 3 4 8 9 10 Sales Forecast 1 771 770 790 788 798 774 794 776 Forecast Method 11 Method 2 772 770 761 774 792 794 771 769 765 777 794 791 a. Compute a tracking signal for the 10th month for each forecast using the cumulative error for months 1 to 10. Use action limits of ± 4. Is there bias present? (Do not round your intermediate calculations. Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) Forecast 2 768 787 798 773 773 770 764 778 792 791 Tracking Signal Bias
Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 10 months. The forecasts and actual sales are as follows: Month 1 2 3 4 8 9 10 Sales Forecast 1 771 770 790 788 798 774 794 776 Forecast Method 11 Method 2 772 770 761 774 792 794 771 769 765 777 794 791 a. Compute a tracking signal for the 10th month for each forecast using the cumulative error for months 1 to 10. Use action limits of ± 4. Is there bias present? (Do not round your intermediate calculations. Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.) Forecast 2 768 787 798 773 773 770 764 778 792 791 Tracking Signal Bias
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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
Transcribed Image Text:b. Compute 2s control limits for each forecast. (Do not round your intermediate calculations. Round your answers
to 2 decimal places.)
Forecast
Method 1
Method 2
Control Limits

Transcribed Image Text:Two independent methods of forecasting based on judgment and experience have been prepared each month for
the past 10 months. The forecasts and actual sales are as follows:
Month
1
2
3
4
7
10
Sales
771
790
794
776
772
770
761
774
792
794
Forecast 1
770
788
798
774
771
769
765
777
794
791
Forecast 2
768
787
798
773
773
770
764
778
792
791
a. Compute a tracking signal for the 10th month for each forecast using the cumulative error for months 1 to 10. Use
action limits of ± 4. Is there bias present? (Do not round your intermediate calculations. Round your answers to 2
decimal places. Negative amounts should be indicated by a minus sign.)
Forecast Tracking Signal
Method 1
Method 2
Bias
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