In May, a firm experienced a forecast error of -25. In June and July, the forecast errors were found to be -10 and 20, respectively. What is the firm's forecast MAD for these three months?
A) -15
B) -5
C) 18.3
D) MAD cannot be determined from the information provided

Question

Quizplus · Accepted Answer

MAD = (|error1| + |error2| + ... + |errorn|)/n 
MAD = (|-25| + |-10| + |20|)/3 
MAD = 18.3 (rounding to one decimal place)

In May, a Firm Experienced a Forecast Error of -25