The primary purpose of the mean absolute deviation (MAD) in forecasting is to:
A) estimate the trend line.
B) eliminate forecast errors.
C) measure forecast accuracy.
D) seasonally adjust the forecast.
E) remove random variations.

Question

Quizplus · Accepted Answer

The primary purpose of MAD in forecasting is to measure forecast accuracy. It helps to determine how close the forecasted values are to the actual values by calculating the average difference between them.

The Primary Purpose of the Mean Absolute Deviation (MAD) in Forecasting