Given forecast errors of - 5, - 10, and +15, the MAD is:
A)0
B)10
C)30
D)175
E)none of these

Name: Given forecast errors of - 5, - 10, and +15, the MAD is: A)0 B)10 C)30 D)175 E)none of these
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Question

Quizplus · Accepted Answer

MAD is calculated by taking the absolute value of the forecast errors, summing them, and dividing by the number of forecasts.

MAD = (|-5| + |-10| + |15|)/3 = 30/3 = 10.

Therefore, the MAD is 10, which is option B.

Given Forecast Errors of - 5, - 10, and +15