Below are the forecasts and actual demands for the first three months. What is the Mean...

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Below are the forecasts and actual demands for the first three months. What is the Mean Absolute Deviation (MAD) for these th

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Answer 1

Answer #1

ANSWER: 2.67

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MAD is calculated as the average of Absolute deviations of each period.

Absolute deviation of each period is equal to the absolute difference between the Actual and Forecast

Absolute deviation for month 1 = ABS(10-14) = 4

Absolute deviation for month 2 = ABS(16-14) = 2

Absolute deviation for month 3 = ABS(13-11) = 2

MAD = (4+2+2)/3

= 8/3

= 2.67

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Answer 2

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