Question: A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives are SR1 = 0.9, SR2 = 0.95, SR3 = 1.05, and
A manager uses a trend equation plus quarterly relatives to predict demand. Quarter relatives are SR1 = 0.9, SR2 = 0.95, SR3 = 1.05, and SR4 = 1.1. The trend equation is: Ft = 9 + 4t. Over the past nine quarters, demand has been as follows:
Compute the MAD and tracking signal for each period. (Negative values should be indicated by a minus sign. Round your intermediate calculations and final answers to 3 decimal places.)
| Period, t: | Demand: | Forecast | MAD | Tracking Signal |
| 1 | 14 | 13 | ||
| 2 | 18 | 17 | ||
| 3 | 20 | 21 | ||
| 4 | 22 | 25 | ||
| 5 | 28 | 29 | ||
| 6 | 30 | 33 | ||
| 7 | 36 | 37 | ||
| 8 | 42 | 41 | ||
| 9 | 45 | 45 |
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