When forecast errors occur in a normally distributed pattern, the ratio of the mean absolute deviation to the standard deviation is 2 to 1, or 2 x MAD = 1 standard deviation.

Name: When forecast errors occur in a normally distributed pattern, the ratio of the mean absolute deviation to the standard deviation is 2 to 1, or 2 x MAD = 1 standard deviation.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

The ratio of the mean absolute deviation (MAD) to the standard deviation for a normal distribution is approximately 0.8, not 2.

When Forecast Errors Occur in a Normally Distributed Pattern, the Ratio