Given forecast errors of -5,-10,and +15,what is the mean absolute deviation (MAD)?
A)0
B)10
C)30
D)175
E)7.5

Name: Given forecast errors of -5,-10,and +15,what is the mean absolute deviation (MAD)? A)0 B)10 C)30 D)175 E)7.5
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Question

Quizplus · Accepted Answer

MAD is calculated as the average of absolute deviations, where absolute deviation = |forecast error|.

So, the absolute deviations for the given forecast errors would be:
|(-5)| = 5
|(-10)| = 10
|(15)| = 15

Now, MAD = (5+10+15)/3 = 10. Hence, option B is the correct choice.

Given Forecast Errors of -5,-10,and +15,what Is the Mean Absolute