Question

Question 2 1 pts Concluding a process is out of control when it is actually in control is known as a Type Il error. O True O False Question 3 1 pts In the weighted moving average forecasting model the sum of weights must be less than 1. True False Question 4 1 pts In order for a process to be capable, it should have a capability index of at least 2.5. True O False Question 5 1 pts The equation for exponential smoothing states that the new forecast is equal to the previous forecast plus 2 times the error of the previous forecast. O True False )

Answer 1

2. FALSE

Concluding a process is out of control when it is in control (not out of control) is a type I error (false positive)

And concluding a process is in control but when it is out of control (not in control) is a type II error (false negative)

3. FALSE

In a weighted moving average forecasting model the sum of weights must be equal to 1 not less than 1.

4.FALSE

In order for a process to be capable, it should have a capability index greater than 1.

5.FALSE

The equation for exponential smoothing states that the new forecast is equal to the previous forecast plus a portion of the error i.e the difference between the forecast and actual.

Ft+1 = αDt + (1-α)Ft

Ft+1 = αDt + Ft-αFt = α(Dt-Ft)+Ft

Ft+1 = forecast of the current period

Ft = previous forecast

Dt = previous actual