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 = 6 + 4t. Over the past nine quarters, demand has been as follows: Period, t:123456789Demand:111517222832363943 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, tDemandMADTracking signal111 215 317 422 528 632 736 839 943

Answered: Compute the MAD and tracking signal for…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.3: Simple Regression Models

Problem 5P: Management of a home appliance store wants to understand the growth pattern of the monthly sales of...

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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 = 6 + 4t. Over the past nine quarters, demand has been as follows:

Period, t:	1	2	3	4	5	6	7	8	9
Demand:	11	15	17	22	28	32	36	39	43

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	MAD	Tracking signal
1	11
2	15
3	17
4	22
5	28
6	32
7	36
8	39
9	43

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