The tracking signal is the:
A) standard error of the estimate.
B) absolute deviation of the last period's forecast.
C) MAD.
D) ratio of cumulative error / MAD.
E) MAPE.

Question

Quizplus · Accepted Answer

The tracking signal is calculated as the ratio of the cumulative error (sum of forecast errors) to the MAD. It is used to monitor whether the forecast is biased (over- or under-forecasting consistently) and whether the level of forecast error is within acceptable limits.

The Tracking Signal Is The