T**THE TRACKING SIGNALS (ARE WITHIN) OR (NOT WITHIN) ACCEPTABLE LIMITS***

Passenger miles flown on Northeast Airlines, a commuter firm serving the Boston hub, are shown for the past 12 weeks: 1 Week 2 3 4 5 6 7 8 9 10 11 12 Actual Passenger Miles (in thousands) 18 21 19 22 20 19 21 20 23 21 13 25 a) Assuming an initial forecast for week 1 of 18,000 miles, use exponential smoothing to compute miles for weeks 2 through 12. Use a=0.18 (round your responses to two decimal places). 1 2 3 4 5 6 7 8 9 10 11 12 Week Forecasted Passenger Miles (in thousands) 18.00 18.00 18.54 18.62 19.23 19.37 19.30 19.61 19.68 20.28 20.41 19.08 b) The MAD for this model = 2.29 thousand (round your response to two decimal places). c) Compute the Cumulative Forecast Errors, cumulative MAD in thousands, and tracking signals (round your responses to two decimal places). Tracking Signal Week 7 Week 1 2 3 Cumulative Forecast Errors 0.00 3.00 3.46 6.84 7.61 7.24 MAD 0.00 1.50 1.15 1.71 MAD 1.38 1.26 1.49 Cumulative Forecast Errors 8.94 9.33 12.65 13.37 5.96 11.88 2.00 3.00 4.00 5.00 5.44 8 9 10 Tracking Signal 6.46 7.41 8.50 9.48 3.04 5.19 4 5 1.52 11 1.41 1.96 2.29 6 1.33 12 Are the tracking signals within acceptable limits? The control limits for the tracking signal are set at 5MADs. The tracking signals acceptable limits