Answered

Get the answers you've been looking for with the help of IDNLearn.com's expert community. Ask any question and receive comprehensive, well-informed responses from our dedicated team of experts.

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, 20 and 30 units respectively, what is the MAD at the end of four months

Sagot :

Tundexiidn

Answer:

5.5 units

Explanation:

Period   Actual     Forecast   Absolute deviation

   1            16              20                     4

  2            28              16                    12  

  3            20              20                    0

  4            24              30                    6

Total                                                   22

Mean absolute deviation(MAD) = Sum of absolute deviation / Number of periods

Mean absolute deviation(MAD) = 22 / 4

Mean absolute deviation(MAD) = 5.5 units

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com provides the answers you need. Thank you for visiting, and see you next time for more valuable insights.