Table 11.9.
$$\begin{array} { | c | c | c | }
\hline \text { Quarter } & \begin{array} { c }
\text { Forecasted } \
\text { Demand } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Demand } \
\text { (Units) }
\end{array} \
\hline 1 & 85 & 95 \
2 & 55 & 55 \
3 & 70 & 45 \
4 & 60 & 75 \
\hline
\end{array}$$
-Use the information in Table 11.9. What is the mean absolute deviation of forecast errors for the data?
A) 0 units
B) greater than 0, but less than or equal to 25 units
C) greater than 25, but less than or equal to 50 units
D) greater than 50 units

Question

Table 11.9.
$$\begin{array} { | c | c | c | } 
\hline \text { Quarter } & \begin{array} { c } 
\text { Forecasted } \
\text { Demand } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Demand } \
\text { (Units) }
\end{array} \
\hline 1 & 85 & 95 \
2 & 55 & 55 \
3 & 70 & 45 \
4 & 60 & 75 \
\hline
\end{array}$$
-Use the information in Table 11.9. What is the mean absolute deviation of forecast errors for the data?
A) 0 units
B) greater than 0, but less than or equal to 25 units
C) greater than 25, but less than or equal to 50 units
D) greater than 50 units

Quizplus · Accepted Answer

The mean absolute deviation (MAD) is calculated by taking the average of the absolute differences between forecasted and actual demand. The absolute deviations are |85-95|=10, |55-55|=0, |70-45|=25, |60-75|=15. The MAD is (10+0+25+15)/4 = 12.5 units, which is greater than 0 but less than or equal to 25 units.

Table 119 -Use the Information in Table 11