14.

The number of flowers sold at The Blossom Shop on Fridays is shown in the table below. Round off all calculations to two decimal places. Maintaining two decimal places is required for all calculations Assume that the control limits for the tracking signal are plusminus 4. what can be concluded about the quality of the forecasts using alpha = 0.40 or alpha = 0.60? A. Both forecasts are unbiased. The forecasts using alpha = 0.4 and alpha = 0.6. both produce no tracking signal that falls outside the tracking signal limits. B. Both forecasts are biased. The forecasts using alpha = 0.4 and alpha = 0.6 both produce a tracking signal that falls outside the tracking signal limits. C. The forecast using alpha = 0.4 is biased. The forecast using alpha = 0.4 produces a tracking signal that falls outside the tracking signal limits. The forecast using alpha = 0.6 is unbiased and does not produce a tracking signal that falls outside the tracking signal limits. D. The forecast using al

## Expert Answer

**C. The forecast using alpha = 0.4 is biased. The forecast using alpha = 0.4 produces more than one tracking signal that falls outside the tracking signal limits. Therefore, cast using alpha = 0.6 is unbiased and produces no tracking signal that falls outside the tracking signal limits.**

Tracking signal is the ratio of the bias which further divided by the mean absolute deviation. If there is fall in the tracking signal which outside an interval which is at the center that is at the zero point, which means the signal is at the forecast model which is going to be biased and the forecast model validity model is suppose to be investigated. This means the forecast using that alpha =0.4 is biased. At this level it produces more than the other tracking signal and falls outside.