Given forecast errors of 6, 4, 0 and -2, what is the mean absolute deviation?
A) 2
B) 3
C) 4
D) 2.67
E) none of the above

Question

Quizplus · Accepted Answer

The mean absolute deviation (MAD) is calculated by taking the absolute values of the errors, summing them up, and then dividing by the number of errors. Here, |6| + |4| + |0| + |-2| = 6 + 4 + 0 + 2 = 12. Dividing by the number of errors (4), we get 12 / 4 = 3.

Given Forecast Errors of 6, 4, 0 and -2, What