If the sum of demands for 8 time periods is 420 and the sum of the forecasts for the same periods is 500,MAD is
A)0.8
B)-8.0
C)-10.0
D)10.0

Question

Quizplus · Accepted Answer

MAD (Mean Absolute Deviation) is calculated as the average of the absolute differences between the forecasted values and the actual values. Here, the total difference is 500 - 420 = 80. Since there are 8 periods, MAD = 80 / 8 = 10.0.

If the Sum of Demands for 8 Time Periods Is