Answer:
You are using an exponential smoothing model for forecasting. The running sum of the
forecast error statistics (RSFE) are calculated each time a forecast is generated. You
find the last RSFE to be 34. Originally the forecasting model used was selected because
it’s relatively low MAD of 0.4. To determine when it is time to re-evaluate the
usefulness of the exponential smoothing model you compute tracking signals. Which of
the following is the resulting tracking system?
A.85
B.60
C.13.6
D.12.9
E.8
Answer:
On a good day a distributor will have $5,000 of inventory sales; on a medium day sales
of $3,000; on a bad day only $1,000. Suppose you have data on this distributor’s sales
for the past 100 days and that she had 25 good days, 50 medium days and 25 bad days.
If you draw a random number to represent her sales for the first simulated day and that
number were 89, which of the following were her simulated sales? (Note: arrange the
random number interval probability distribution so it starts with a good day at 00
followed by a medium day, etc.)
A.$5,000
B.$3,000