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

Absolute deviation for month 1 = 14 – 11 = 3

Absolute deviation for month 2 = 16 – 14 = 2

Absolute deviation for month 3 = 13 – 13 = 0

Mean absolute deviation = Sum of absolute deviations / 3 = ( 3 + 2 + 0 )/ 3 = 5/3 = 1.67

ANSWER : 1.67

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Answer 2

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