# Question & Answer: Two independent methods of forecasting based on judgment and experience have been…..

Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 10 months. The forecasts and actual sales are as follows:

 Month Sales Forecast 1 Forecast 2 1 770 771 769 2 789 785 787 3 794 790 792 4 780 784 798 5 768 770 774 6 772 768 770 7 760 761 759 8 775 771 775 9 786 784 788 10 790 788 788

a. Compute a tracking signal for the 10th month for each forecast using the cumulative error for months 1 to 10. Use action limits of ± 4. Is there bias present? (Do not round your intermediate calculations. Round your answers to 2 decimal places. Negative amounts should be indicated by a minus sign.)

 Forecast Tracking Signal Bias Method 1 Present Method 2 Present

b. Compute 2s control limits for each forecast. (Do not round your intermediate calculations. Round your answers to 2 decimal places.)

 Forecast Control Limits Method 1 Method 2