a company has the following information regarding its forecast performance in the past three periods. icture what is the mean absolute deviation (mad)? question 26 options: 225 -66.7 1200 200



Answer :

The mean absolute deviation over three period of time is 200

The absolute value of error in period 1 = 300

The absolute value of error in period 2 = 200

The absolute value of error in period 3 = -100

Total absolute value of error = The absolute value of error in period 1 + The absolute value of error in period 2 + The absolute value of error in period 3

Substitute values in the equation

Total absolute value of error  = 300 + 200 + 100

= 600

The mean absolute deviation = Total absolute value of error / 3

Substitute the values in the equation

The mean absolute deviation  = 600 / 3

= 200

Therefore, the mean absolute deviation is 200

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