What is the mean absolute deviation of the following forecasts? Month Actual Sales Forecast
Jan) 614 600
Feb) 480 480
Mar) 500 550
Apr) 500 600
A)3174
B) 164
C) 41
D) 136
E) -34

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: |614-600|=14, |480-480|=0, |500-550|=50, |500-600|=100. The sum of these absolute deviations is 164, and the mean (average) is 164/4 = 41.

What Is the Mean Absolute Deviation of the Following Forecasts