Table 10.9
$$\begin{array} { | c | c | c | }
\hline \text { Quarter } & \begin{array} { c }
\text { Forecasted } \
\text { Demand } \
\text { (Units) }
\end{array} & \begin{array} { c }
\text { Actual } \
\text { Demand } \
\text { (Units) }
\end{array} \
\hline 1 & 85 & 95 \
2 & 55 & 55 \
3 & 70 & 45 \
4 & 60 & 75 \
\hline
\end{array}$$
-Use the information in Table 10.9.What is the mean absolute deviation of forecast errors for the data?
A) 0 units
B) greater than 0, but less than or equal to 25 units
C) greater than 25, but less than or equal to 50 units
D) greater than 50 units

Question

Table 10.9
 $$\begin{array} { | c | c | c | } 
\hline \text { Quarter } & \begin{array} { c } 
\text { Forecasted } \
\text { Demand } \
\text { (Units) }
\end{array} & \begin{array} { c } 
\text { Actual } \
\text { Demand } \
\text { (Units) }
\end{array} \
\hline 1 & 85 & 95 \
2 & 55 & 55 \
3 & 70 & 45 \
4 & 60 & 75 \
\hline
\end{array}$$
-Use the information in Table 10.9.What is the mean absolute deviation of forecast errors for the data?
A) 0 units
B) greater than 0, but less than or equal to 25 units
C) greater than 25, but less than or equal to 50 units
D) greater than 50 units

Quizplus · Accepted Answer

The mean absolute deviation (MAD) is calculated as the average of the absolute differences between forecasted and actual demand: (|85-95| + |55-55| + |70-45| + |60-75|) / 4 = (10 + 0 + 25 + 15) / 4 = 12.5 units, which is greater than 0 but less than or equal to 25 units.

Table 109 -Use the Information in Table 10