The mean absolute deviation is used to:
A) estimate the trend line.
B) eliminate forecast errors.
C) measure forecast accuracy.
D) seasonally adjust the forecast.
E) All of the answers choices are correct.

Question

Quizplus · Accepted Answer

The mean absolute deviation (MAD) is a measure of the accuracy of a forecast. It measures the average absolute difference between the forecasted values and the actual values. A lower MAD indicates a more accurate forecast, while a higher MAD indicates a less accurate forecast. Therefore, choice C is the best choice because it accurately describes the purpose of MAD. The other answer choices do not accurately describe the purpose of MAD.

The Mean Absolute Deviation Is Used To