Question

Given forecast errors of 8, 10, and 9, what is the mean absolute deviation? O A. 2/3 B. 1/3 C.:a. D. O QUESTION 5 Given forecast errors of 3, 6, and 9, what is the mean square error? A. 5 B. 6 c.7 D. 8

Answer 1

4) Mean absolute deviation, MAD = Sum of {(Absolute data point – mean data point)}/Number of data points

Mean = (8+10+9)/3 = 9

MAD = {(9-8) + (10-9) + (9-9)} / 3

MAD = 2/3

Hence the correct answer is A.

5) Mean square error, MSE = sum of {(mean - value) ^2} / number of data points

Mean of errors = 3+6+9/3 = 6

MSE = ((6-3)^2 + (6-6)^2 + (9-6)^2)/3

MSE = 18/3 = 6

The correct answer is B

6) The correct answer is B

Last value forecast sometimes called as naïve forecast assumes next sales forecast as the last sales in the latest period.

7) Moving average forecast = mean of last three periods for the next period.

12

13

14    (12+13+14)/3 = 13

15    (13+14+15)/3 = 14

The correct answer is C