The mean absolute deviation (MAD) is used to:
A)estimate the trend line
B)eliminate forecast errors
C)measure forecast accuracy
D)seasonally adjust the forecast
E)all of the above

Question

Quizplus · Accepted Answer

The mean absolute deviation (MAD) is used to measure the forecast accuracy. It provides a measure of how far the actual values are from the forecasted values, on an average. While it can be used to calculate trend lines, eliminate forecast errors, and seasonally adjust forecasts, these are not the primary purposes of MAD.

The Mean Absolute Deviation (MAD) Is Used To