Question: PLEASE ANSWER ONLY USING EXCEL AND SHOWING FORMULAS . Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are shown for
PLEASE ANSWER ONLY USING EXCEL AND SHOWING FORMULAS
. Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are shown for the past 12 weeks:
| Week | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Actual Passenger Miles (in thousands) | 17 | 21 | 19 | 23 | 18 | 16 | 20 | 18 | 22 | 20 | 15 | 22 |
a. Assuming an initial forecast for week 1 of 17,000 miles, use exponential smoothing to compute miles for weeks 2 through 12. Use a smoothing constant of 0.2.
b. Present a table to compute the Tracking Signal for this problem.
c. Develop a Control Chart of the Tracking Signal using a control limit of + 2.5 MAD.
d. For the forecast to be in control, what percentage of the errors must fall within + 2.5 MAD?
E. Is this forecast in control? Explain.
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