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Question
a tracking signal provides a method for monitoring a forecast to determine when it might be advantageous to change or update the model. the method most often used is to compute the cumulative forecast error divided by the value of the select at that point in time. select mean absolute deviation smoothing constant mean absolute percentage error mean square error
The tracking signal formula is Cumulative Forecast Error (CFE) divided by the Mean Absolute Deviation (MAD). The smoothing constant is for exponential smoothing, mean absolute percentage error (MAPE) is about percentage errors, and mean square error (MSE) is squared errors. So the correct term here is mean absolute deviation.
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mean absolute deviation