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fenix001
2 months ago
6

Suppose that the last four months of sales were 8, 10, 15, and 9 units, respectively. Suppose further that the last four forecas

ts were 5, 6, 11, and 12 units, respectively. What is the Mean Absolute Deviation (MAD) of these forecasts?
Mathematics
1 answer:
Leona [12.6K]2 months ago
4 0

Response:

MAD value comes out to be 3.

Detailed Breakdown:

The given sales forecasts for the last four months are 5, 6, 11, and 12 units.

To calculate the Mean Absolute Deviation (MAD) for these forecasts:

The average of the forecasts across four months is \frac{5 + 6 + 11 + 12}{4} = 8.5.

Thus, the total of absolute differences between the forecast values and the average is = |5 - 8.5| + |6 - 8.5| + |11 - 8.5| + |12 - 8.5| = 3.5 + 2.5 + 2.5 + 3.5 = 12.

Hence, the MAD value will be = \frac{12}{4} = 3 (Final Answer)

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