The mean absolute deviation averages the absolute differences between the actual values of the time series at time t and the forecast values at time:
A) t + 1
B) t
C) t - 1
D) t - 2

Question

Quizplus · Accepted Answer

The mean absolute deviation (MAD) compares actual values to forecast values at the same time period, therefore the forecast value at time t is compared to the actual value at time t, making choice B the correct answer.

The Mean Absolute Deviation Averages the Absolute Differences Between the Actual