Question

A company has actual unit demand for five consecutive years of 100, 105, 135, 145, and 150. The respective forecasts were 110 for all five years. Which of the following is the resulting MAD value that can be computed from this data?
a. 23
b. 22
c. 24
d. 21
e. 30

Answer 1

Answer:

Option A) 23

Step-by-step explanation:

We are given the following data in the question:

100, 105, 135, 145, 150

The respective forecasts were 110 for all five years.

We have to calculate MAD value.

Deviations = 10, 5, 25, 35, 40

Sum of Deviations = 10+5+25+35+40 = 115

MAD =

$\dfrac{\text{Sum of absolute deviation}}{5} = \dfrac{10+5+25+35+40}{5} = \dfrac{115}{5} = 23$

Thus, the correct answer is

Option A) 23