Given the following weekly demand figures,what is the MAD at the end of week 5? $$\begin{array} { | l | l | l | }
\hline \text { Week } & \text { Demand } & \text { Forecast } \
\hline 1 & 100 & 120 \
\hline 2 & 120 & 130 \
\hline 3 & 110 & 120 \
\hline 4 & 130 & 125 \
\hline 5 & 160 & 145 \
\hline
\end{array}$$
A)10.8
B)11.8
C)12.0
D)13.0

Question

Given the following weekly demand figures,what is the MAD at the end of week 5? $$\begin{array} { | l | l | l | } 
\hline \text { Week } & \text { Demand } & \text { Forecast } \
\hline 1 & 100 & 120 \
\hline 2 & 120 & 130 \
\hline 3 & 110 & 120 \
\hline 4 & 130 & 125 \
\hline 5 & 160 & 145 \
\hline
\end{array}$$
A)10.8
B)11.8
C)12.0
D)13.0

Quizplus · Accepted Answer

To calculate MAD (Mean Absolute Deviation), we need to find the absolute value of the difference between the demand and forecast for each week, then sum those values and divide by the number of weeks.

Absolute Deviation for each week:

|100-120| = 20 
|120-130| = 10 
|110-120| = 10 
|130-125| = 5 
|160-145| = 15

Sum of Absolute Deviations: 20+10+10+5+15 = 60

Mean Absolute Deviation: 60/5 = 12

Therefore, the MAD at the end of week 5 is 12. The closest option to this is C) 12.0.

Given the Following Weekly Demand Figures,what Is the MAD at the End