Answer:
MAD value is [tex]\frac{32}{3}[/tex]
Explanation:
Given that:
Actual unit demand for three consecutive years of 121, 126, 135.
The respective forecasts for the same three years are 120, 120, 130
=> The deviations are(actual - forecast): 21 , 6, 5
So the sum of deviations : 21+6+5 = 32
As we know that, to find MAD we use the formula:
MAD = the sum of deviations / number of years
<=> MAD = 32 / 3 = [tex]\frac{32}{3}[/tex]
Hope it will find you well.
Answer:
4
Explanation:
MAD , an acronym for mean absolute deviation is used to measure the accuracy of prediction by averaging the alleged error.
It is calculated through the average of absolute value.
Actual unit demand for three consecutive years of 121, 126, 135.
Respective forecasts for the same three years are 120, 120, 130
MAD value =(121-120) + (126-120) + (135-130)/3
= (1+6+5)/3 =4
