$\text { XYZ Company - Annual data }$
$\begin{array} { c c }
\text { Actual Demand } & \text { Forecasted Demand } \
15 & 14 \
15 & 16 \
17 & 18 \
18 & 20 \
20 & 22 \
21 & 24
\end{array}$
-Based on the information given in the table above,what is the MAD?
A)1.3333
B)1.6667
C)2.5
D)3.3333
E)4.5

Question

$\text { XYZ Company - Annual data }$
$\begin{array} { c c } 
\text { Actual Demand } & \text { Forecasted Demand } \
15 & 14 \
15 & 16 \
17 & 18 \
18 & 20 \
20 & 22 \
21 & 24
\end{array}$
-Based on the information given in the table above,what is the MAD?
A)1.3333
B)1.6667
C)2.5
D)3.3333
E)4.5

Quizplus · Accepted Answer

The Mean Absolute Deviation (MAD) is calculated by taking the absolute differences between the actual and forecasted demand, summing these differences, and then dividing by the number of observations. Here, the calculations are as follows:$|15 - 14| = 1$$|15 - 16| = 1$$|17 - 18| = 1$$|18 - 20| = 2$$|20 - 22| = 2$$|21 - 24| = 3$Sum of absolute differences = $1 + 1 + 1 + 2 + 2 + 3 = 10$Number of observations = 6MAD = $10 / 6 = 1.6667$

XYZ Company - Annual data \text { XYZ Company - Annual data } XYZ Company - Annual data -Based on the Information Given in the Table Above,what Is

$\text { XYZ Company - Annual data }$ -Based on the Information Given in the Table Above,what Is