If the demand for a product was 16, 28, 20 and 24 units in four consecutive months, and the corresponding forecasts in those four months were 20, 16,2 respectively, what is the MAD at the end of four months? O 5.5 units O 0.5 units 0 2 units 0 22 units
Expert Answer
MAD = Sum of the absolute deviation for all the periods / number of periods
Where, absolute deviation = absolute value of deviation
Deviation = actual value – forecasted value
So using the above formula the deviation and absolute deviation for all the four months are
For month 1, deviation
OR
PayPal Gateway not configured
OR
PayPal Gateway not configured