[The following information applies to the questions displayed below.]
$\begin{array}{crccc}
& \text { Actual } & & \
\text { Period } & \text { Demand } & \text { Forecast Demand } & \text { Error } & \text { Absolute Value } \
1 & 800 & 1100 & (300) & 300 \
2 & 1200 & 1000 & 200 & 200 \
3 & 1400 & 1500 & (100) & 100
\end{array}$
-What is the Mean Absolute Deviation (MAD)?
A)200
B)225
C)-66.67
D)1200

Question

[The following information applies to the questions displayed below.]
 $\begin{array}{crccc}
& \text { Actual } & & \
\text { Period } & \text { Demand } & \text { Forecast Demand } & \text { Error } & \text { Absolute Value } \
1 & 800 & 1100 & (300) & 300 \
2 & 1200 & 1000 & 200 & 200 \
3 & 1400 & 1500 & (100) & 100
\end{array}$
-What is the Mean Absolute Deviation (MAD)?
A)200
B)225
C)-66.67
D)1200

Quizplus · Accepted Answer

The Mean Absolute Deviation (MAD) is calculated by summing the absolute values of the errors and dividing by the number of observations. Here, $MAD = \frac{300 + 200 + 100}{3} = \frac{600}{3} = 200$.

[The Following Information Applies to the Questions Displayed Below -What Is the Mean Absolute Deviation (MAD)? A)200 B)225 C)-66

[The Following Information Applies to the Questions Displayed Below -What Is the Mean Absolute Deviation (MAD)?
A)200
B)225
C)-66