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For the following data set, what is the mean absolute deviation ROUNDED TO THE NEAREST WHOLE NUMBER? Notice that there are 3 periods of data and...

Mean absolute deviation (MAD) is calculated by using the difference between the actual demand and the forecast demand ignoring the sign. It is the sum of the absolute deviations divided by the number of data points.


`MAD=(sum_(i=1)^n|A_t-F_t|)/n`


where,


A=Actual demand for the period


F= Forecast demand for the period


t=Period number


n=Total number of periods


Period  Forecast     Actual    Deviation   Absolute Deviation


  1          100               105           5                     5


  2          110               106          -4                     4


  3          120               116          -4                     4


`MAD=(5+4+4)/3`


`=13/3=4.33`


Round off to the nearest whole number,


So, the Mean absolute deviation is 4.

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