What is the mean absolute deviation of the following forecasts? Month Actual Sales Forecast
January68 60
February 48 50
March 50 60
April 30 30
A)-1
B) 5
C)20
D) 1
E)42

Question

Quizplus · Accepted Answer

The mean absolute deviation (MAD) is calculated by taking the average of the absolute differences between the actual sales and the forecasted sales for each month. The absolute deviations are |68-60|=8, |48-50|=2, |50-60|=10, and |30-30|=0. The MAD is (8+2+10+0)/4 = 5.

What Is the Mean Absolute Deviation of the Following Forecasts