Given forecast errors of 5, 0,−4, and 3, what is the mean absolute deviation?
A)4
B)3
C)2.5
D)2
E)1

Name: Given forecast errors of 5, 0,−4, and 3, what is the mean absolute deviation? A)4 B)3 C)2.5 D)2 E)1
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Quizplus · Accepted Answer

The mean absolute deviation (MAD) is calculated by taking the absolute values of the forecast errors, summing them up, and then dividing by the number of errors. Here, |5| + |0| + |-4| + |3| = 5 + 0 + 4 + 3 = 12. Dividing by the number of errors (4), we get 12 / 4 = 3.

Given Forecast Errors of 5, 0,−4, and 3, What Is