Engineering Board Exam Reviewer · Engineering Management · medium
Actual demand for three periods was 100, 120 and 130 units, while forecasts were 110, 115 and 140 units. What is the mean absolute deviation (MAD)?
- 5.00 units
- −5.00 units
- 8.33 units
- 25.00 units
Answer
C. 8.33 units
Solution
Absolute errors: 10, 5, 10. MAD = 25/3 = 8.33 units.
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