Sales for boxes of Girl Scout cookies over a 4-month period were forecasted as follows: 100, 120, 115, and 123.The actual results over the 4-month period were as follows: 110, 114, 119, 115.What was the MAD of the 4-month forecast?
A)0
B)5
C)7
D)108

Question

Quizplus · Accepted Answer

MAD (Mean Absolute Deviation) is calculated by finding the absolute difference between the forecasted value and the actual value, summing those differences, and dividing by the number of periods.

Month 1: Absolute Difference = |100-110| = 10
Month 2: Absolute Difference = |120-114| = 6
Month 3: Absolute Difference = |115-119| = 4
Month 4: Absolute Difference = |123-115| = 8

MAD = (10+6+4+8)/4 = 7.

Therefore, the MAD of the 4-month forecast was 7. The best choice is C.

Sales for Boxes of Girl Scout Cookies Over a 4-Month