______ is the average of the sum of the absolute differences between the actual and forecasted demand values.
A)Mean squared error (MSE)
B)Mean absolute deviation (MAD)
C)Mean absolute percentage error (MAPE)
D)Cumulative sum error (CSE)

Question

Quizplus · Accepted Answer

The described measurement is known as the Mean absolute deviation (MAD), which calculates the average deviation between actual and forecasted values independent of sign. This is different from the Mean squared error (MSE) and the Mean absolute percentage error (MAPE), which consider the square or percentage differences between actual and forecasted values, respectively. The Cumulative sum error (CSE) is not a commonly used measure of forecast error.

______ Is the Average of the Sum of the Absolute