If the errors produced by a forecasting method for 3 observations are +3,+3 and -3,then what is the mean absolute deviation (MAD)?
A)9
B)0
C)3
D)-3
E)15

Name: If the errors produced by a forecasting method for 3 observations are +3,+3 and -3,then what is the mean absolute deviation (MAD)? A)9 B)0 C)3 D)-3 E)15
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Question

Quizplus · Accepted Answer

MAD is the mean of the absolute values of the errors.

Absolute value of +3 = 3 
Absolute value of +3 = 3 
Absolute value of -3 = 3

MAD = (3+3+3)/3 = 3

If the Errors Produced by a Forecasting Method for 3